China’s state-owned banks sell dollars onshore to back the yuan

Chinese state-owned banks were seen selling on Tuesday dollars at the 6.80 yuan per dollar level in the onshore foreign exchange market, two traders said.

“Major state-owned banks were selling dollars in morning trade,” said a trader at a Chinese bank in Shanghai.

State-owned banks have offered dollar liquidity regularly over the past two months in what traders believe is part of efforts to support the yuan from falling too fast.

Source: Reuters