Tue. Feb 20th, 2024

SHANGHAI (Reuters) – China’s main state-owned banks have been seen busy promoting U.S. {dollars} to purchase yuan in each onshore and offshore spot international change markets this week, folks with direct data of the matter stated, in an try and arrest the yuan’s fast losses.

State banks often act on behalf of China’s central financial institution within the nation’s international change market, however they may additionally commerce on their very own behalf or execute their purchasers’ orders.

Offshore branches of the state banks have been seen promoting {dollars} throughout London and New York buying and selling hours this week, two sources with direct data of the matter stated on Thursday.

Such greenback promoting might restrict falls within the offshore yuan and forestall it from diverging too removed from its onshore counterpart.

In the meantime, two separate sources additionally stated state banks provided {dollars} in onshore international change markets.

Greenback promoting was primarily to “management the tempo of yuan depreciation,” one of many sources stated.

The onshore yuan traded at 7.3096 per greenback as of 0205 GMT, whereas the offshore yuan final fetched 7.3356.

(Reporting by Shanghai Newsroom; Modifying by Jacqueline Wong)

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