People familiar with the matter revealed that China's major state -owned banks are selling the US dollar and buying RMB to slow down the pace of further depreciation of the RMB.
According to the Reuters, three people familiar with the matter reported that Chinese state -owned banks sold the US dollar and bought RMB on the shore foreign exchange market on Wednesday (August 9).
It is reported that Chinese state -owned banks usually represent the central bank in the foreign exchange market, but they can also conduct instructions for transactions or customers themselves.
Reuters last Tuesday (August 1) reported that the China National Exchange Administration recently issued an informal instruction to the bank in the form of window guidance, requiring some commercial banks to reduce or delay the purchase of the US dollar to slow down the RMBDeclars depreciation.
Affected by factors such as the sharp upside down of Sino -US spreads, weak China's macroeconomic trend, and seasonal Chinese -funded Hong Kong stocks, such factors, the exchange rate of the RMB against the US dollar has depreciated by more than 3%this year.One of Asia's worst currency.The exchange rate of the RMB against the US dollar fell below 7.2 yuan at the end of June.
As of 12 noon on Wednesday, the exchange rate of the RMB against the US dollar was reported at 7.18.
