27-6-2023 (BEIJING) China’s state-owned banks were detected to be selling dollars in the offshore spot foreign exchange market on Tuesday, according to four sources familiar with the matter. This move suggests that authorities are attempting to curb the recent decline of the yuan.
The state bank’s sale of dollars was observed as the offshore yuan depreciated towards the crucial level of 7.25 per dollar, as per two of the sources. This intervention was a sign that the Chinese government is attempting to prevent the yuan from weakening further against the dollar.
The yuan has been under pressure due to concerns over China’s economic growth and the ongoing trade tensions between the United States and China. The Chinese currency had fallen to its lowest level in more than a year last week, prompting speculation that the government may intervene to support the currency.
