China is reportedly requested that banks delay the purchase of US dollars to slow down

People familiar with the matter revealed that the Chinese monetary regulatory authorities are asking some commercial banks to reduce or delay the purchase of the US dollar to slow down the depreciation of the RMB.

According to Reuters on Tuesday (August 1), two people familiar with the matter reported that the China State Administration of Foreign Exchange recently issued an informal instruction to the bank in the form of window guidance, sayingBuy US dollars under the self -operated transaction account.

The People's Bank of China did not immediately reply to Reuters' comment requirements.The State Administration of Foreign Exchange in China responded that the RMB exchange rate is expected to be stable, and the foreign exchange market has the basis for meeting the needs of real and implementation of foreign exchange needs.Officials will promote the company and financial institutions to maintain "risk neutral thinking" and reiterate the basic stability of the RMB exchange rate at a reasonable balance.

The RMB has fallen from a new low in July this year to eight months. Since this year, the exchange rate of the RMB against the US dollar has depreciated by 3.6%, and it is one of the worst currencies in Asia.

People familiar with the matter said that the China State Administration of Foreign Exchange requires banks to postpone the purchase of US dollars to control the demand for non -urgent US dollars or alleviate some pressure on the depreciation of the RMB.

It is reported that the Bank of China also asked banks to restrict the scale of their own trading accounts in 2021 to fight against the fluctuations of the RMB exchange rate.The monetary management department has only revised some regulations so far, such as allowing the company to increase overseas lending, setting the daily benchmark exchange rate of more stringent RMB than expected, and buying some RMB for state -owned banks.

Alvin Tan, the Asian foreign exchange strategy director of the Royal Bank of Canada's capital market, said the RMB fixed price of the People's Bank of China continued to be higher than expected, showing the stability of the renminbi.

Zhang Jiantai, the chief foreign exchange strategist of Hong Kong Ruisui Bank of Asia, also believes that the official implementation of China's supervisory official window guidance shows that the central bank still firmly supports RMB, and at the same time reflects that the central bank still has enough tools to defend the RMB.

But Alvin expects that as the US dollar exchange rate rises after raising interest rates in the Federal Reserve, and investors' decisive optimism of the decisive improvement of the Chinese economy, the RMB against the US dollar exchange rate will return later this month will return to the time of this month.7.25 low in July.