Stock Market News
Exclusive-China’s state banks seen acquiring dollars in swaps market to stabilise yuan – sources
2022.10.17 00:37
© Reuters. FILE PHOTO: A China yuan note is seen in this illustration photo May 31, 2017. REUTERS/Thomas White/Illustration/File Photo/File Photo
SHANGHAI (Reuters) – China’s major state-owned banks were spotted swapping yuan for U.S. dollars in the forwards market and selling those dollars in the spot market on Monday morning, six banking sources said.
The selling seemed to be aimed at stabilising the yuan, with the swaps helping procure dollars as well as anchoring the price of yuan in forwards, the sources, who have direct knowledge of market trades, told Reuters.
The yuan is down 11.6% versus the dollar this year. It was trading around 7.1980 per dollar on Monday, while the one-year forwards had fallen to 6.95.