According to Jin10, the People's Bank of China raised the foreign exchange deposit reserve requirement for financial institutions on November 3, after the renminbi had recently strengthened, to stabilize market expectations and support stable foreign exchange market operations. Raising the ratio tightens domestic U.S. dollar liquidity and eases appreciation pressure on the renminbi; lowering it can ease depreciation pressure when the renminbi falls too quickly. The central bank raised the ratio twice in 2021, to 9%, and cut it three times from 2022 to 2023, bringing it to the current 4%. Wen Bin of China Minsheng Bank said the latest increase would help balance foreign exchange supply and demand and break the self-reinforcing expectation of renminbi appreciation. He described the increase as a transparent, market-based measure that signals the central bank's intention to stabilize market expectations and keep the renminbi basically stable at a reasonable and balanced level.