China's big banks seen selling dollars to bolster the yuan currency – report

<p>It is being reported that China's major state-owned banks were seen selling dollars in the onshore market today in order to try and prop up the yuan currency. This comes as domestic stocks <a href="https://www.forexlive.com/news/chinese-stocks-routed-again-after-no-help-from-the-pboc-20240122/" target="_blank" rel="follow">took a big tumble</a> again in trading today, after <a href="https://www.forexlive.com/centralbank/pboc-loan-prime-rates-lpr-are-unchanged-1-year-345-5-year-420-as-expected-20240122/" target="_blank" rel="follow">the PBOC chose not to act</a>. The sources also say that the banks moved to curtail lending in order to tighten yuan liquidity in the offshore market i.e. making it more expensive to short the currency.</p>

This article was written by Justin Low at www.forexlive.com.