China bringing bulk dollar purchases under the microscope
<img width="250" height="152" src="https://www.leaprate.com/wp-content/uploads/2023/09/FIN-LP-China-bringing-bulk-dollar-purchases-under-the-microscope-5145028783iStock-1227092481-250×152.jpg" class="webfeedsFeaturedVisual wp-post-image" alt="" decoding="async" style="float: left; margin-right: 5px;" link_thumbnail="" srcset="https://www.leaprate.com/wp-content/uploads/2023/09/FIN-LP-China-bringing-bulk-dollar-purchases-under-the-microscope-5145028783iStock-1227092481-250×152.jpg 250w, https://www.leaprate.com/wp-content/uploads/2023/09/FIN-LP-China-bringing-bulk-dollar-purchases-under-the-microscope-5145028783iStock-1227092481-700×426.jpg 700w, https://www.leaprate.com/wp-content/uploads/2023/09/FIN-LP-China-bringing-bulk-dollar-purchases-under-the-microscope-5145028783iStock-1227092481-768×468.jpg 768w, https://www.leaprate.com/wp-content/uploads/2023/09/FIN-LP-China-bringing-bulk-dollar-purchases-under-the-microscope-5145028783iStock-1227092481-120×73.jpg 120w, https://www.leaprate.com/wp-content/uploads/2023/09/FIN-LP-China-bringing-bulk-dollar-purchases-under-the-microscope-5145028783iStock-1227092481-245×149.jpg 245w, https://www.leaprate.com/wp-content/uploads/2023/09/FIN-LP-China-bringing-bulk-dollar-purchases-under-the-microscope-5145028783iStock-1227092481-500×304.jpg 500w, https://www.leaprate.com/wp-content/uploads/2023/09/FIN-LP-China-bringing-bulk-dollar-purchases-under-the-microscope-5145028783iStock-1227092481.jpg 1312w" sizes="(max-width: 250px) 100vw, 250px" /><p><span data-contrast="auto">According to the report, any business wanting to purchase $50 million or more, must now first obtain approval from the People’s Bank of China (PBOC). This decision comes after the institution had a meeting with some of the commercial banks over the weekend.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span></p>
<p><span data-contrast="auto">During this year, the Chinese yuan decreased by approximately 6% against the U.S. dollar, a decline last experienced in the 2008 global financial crisis. Indications are that the yuan will bow the knee even further to the dollar and weaken beyond the 7.5 per dollar mark.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span></p>
<p><span data-contrast="auto">To date, the PBOC has not offered a statement to either confirm or deny these speculations. China has however made various efforts to decelerate this downtrend, including setting stronger midpoint fixings.</span></p>
<hr />
<p><a href="https://finaffiliates.us20.list-manage.com/subscribe/post?u=e0dd4d77c259eb270712a4eeb&id=fd200b8f75&v_id=4291&f_id=00946ce6f0" target="_blank" rel="noopener"><em>Don’t miss out the latest news, subscribe to LeapRate’s newsletter</em></a></p>
<hr />
<p><span data-contrast="auto">Earlier in September, the country stated it plans to increase the supply of dollars by decreasing the amount of foreign exchange banks are required to set aside. The Reuters sources also alleged that <a href="https://www.leaprate.com/news/markets-taking-note-of-chinas-iphone-ban/" target="_blank" rel="noopener">China’s</a> financial regulators asked some banks to either reduce or halt purchases of U.S. dollars.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span></p>
<p><span data-contrast="auto">While these postulations flitted around in financial spheres, state-owned banks in China sold dollars in both local and foreign markets, trying to raise the yuan’s liquidity and the cost of shorting it. The country’s foreign exchange self-regulatory body confirmed that it would defend the yuan against overshooting and would do everything to prevent one-sided and pro-cyclical activities.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span></p>
<p>The post <a rel="nofollow" href="https://www.leaprate.com/news/china-bringing-bulk-dollar-purchases-under-the-microscope/">China bringing bulk dollar purchases under the microscope</a> appeared first on <a rel="nofollow" href="https://www.leaprate.com">LeapRate</a>.</p>
Leave a Comment