May 29, 2024 06:22 GMT
Reports Of State Bank Support Via Swaps
CNH
MNI (London) - RTRS sources suggest that "China's major state-owned banks were acquiring U.S. dollars in the offshore foreign exchange market before selling them in the spot market to stabilise the Chinese currency in recent sessions."
This is seen as a tactic to limit the pace of the decline in the yuan.
- While the tactic is not a new one, the sources note that "the state banks' tactics in the offshore market were slightly different from what they have done over the past few months, when they tightened offshore yuan liquidity to raise the cost of shorting the Chinese unit."
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