CNN Indonesia
Friday, 21 Jul 2023 06:12 WIB
Major banks in China flocked to sell US dollar reserves in order to stem the rate of decline in the yuan exchange rate. (CNN Indonesia/Safir Makki)
Jakarta, CNNIndonesia —
Bank-bank in China flocked to sell US dollars in order to stem the rate of decline in the exchange rate yuan.
To Reuterstwo sources familiar with the sell-off said the big banks were selling their dollar reserves to buy yuan on the market to keep the currency from depreciating.
This Thursday (20/7), the Central Bank of China also announced the easing of cross-border financing rules. This easing is to make it easier for their domestic companies to raise funds from overseas markets, as well as reduce pressure on the yuan.
The yuan had strengthened more than 0.7 percent to a high of 7.189 per US dollar, in yesterday’s trading.
However, so far this year the yuan has lost about 4 percent against the US dollar.
This record makes the yuan one of the worst performing Asian currencies in 2023.
(pta/sfr)
2023-07-20 23:12:19
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