ALBAWABA – China is selling US dollars for Yuan to slow the pace of the Chinese currency’s decline, according to an exclusive Reuters report published Thursday.
China’s major state-owned banks were seen selling US dollars to buy Yuan in the offshore spot market in early Asian trades on Thursday, unnamed sources told Reuters.
The central bank of China, also on Thursday, announced more lax rules for cross-border financing, making it easier for domestic firms to raise funds from overseas markets. This also helps ease depreciation pressure on the Yuan.
China's offshore Yuan strengthened more than 0.7 percent to a high of 7.1812 per dollar before last trading at 7.1890, Reuters reported.
The Yuan followed a similar upward bounce in the onshore market. But it is still down about 4 percent against the dollar year-to-date, making it one of the worst-performing Asian currencies in 2023, according to the Canada-based news agency.
