The Required Reserve is depositors'bank's minimum balance of deposits in central bank to ensure that the bank do no run out of cash on hand to meet the demand for withdrawals and settlement.
Banks' forex settlement and sales as well as foreign related receipts and payments will result in forex reserve increases. It will bring greater pressure to appreciation of RMB.
银行结售和涉外收付款的顺差将导致外汇储备增加，将带给人民币更大的升值压力。
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The value of reserve capacity is derived from security pricing and provides a theoretical basis for the settlement of reserve compensation scheme.