China's major state-owned banks were seen busy selling U.S. dollars to buy yuan in both onshore and offshore spot foreign exchange markets this week, people with direct knowledge of the matter said, in an attempt to slow the yuan's depreciation.

China’s major state-owned banks were seen busy selling U.S. dollars to buy yuan in both onshore and offshore spot foreign exchange markets this week, people with direct knowledge of the matter said, in an attempt to slow the yuan’s depreciation.

      • abrasiveteapot@sh.itjust.worksEnglish
        82·
        1 year ago

        Sure, it’s been a while since China had to protect its currency from negative pressure, and it’s in reuters because it’s a clear market signal. However a softening economy isn’t unusual generally, just a first in decades for China.

        It’s as much a sign that as a country they’re maturing past the developing country growth wave they’ve been on, and hitting the cycles that developed nations need to manage. Couple that with a trade war with the US slowing down key parts of the economy and it’s notable but not surprising.

        Those predicting a wholesale economic collapse will however be just as disappointed as they were 12months ago when predicting a real estate lead crash.

  • MicroWave@lemmy.worldOPEnglish
    81·
    1 year ago

    During recent weeks, market watchers say the Chinese authorities have sought to slow the yuan’s decline, with the PBOC persistently setting a stronger-than-expected fixing, and state banks repeatedly selling dollars.