http://China tells state banks to prepare for a massive dollar dump and yuan buying spree as Beijing’s prior interventions have failed to stem its currency’s worst year since 1994
Thu, September 29, 2022 at 10:14 AM·2 min read
- Reuters reported that China told state-owned banks to get ready to sell dollars and buy yuan in an effort to prop up the local currency.
- The move could stem the yuan’s fall, as it remains on track for its largest annual loss against the dollar since 1994.
- A hawkish Fed has pushed the dollar to 20-year highs this year, pressuring currencies around the world.
The People’s Bank of China has told major state-run banks to prepare to shed dollar holdings while snapping up offshore yuan, which has continued to fall despite prior interventions, sources told Reuters.