China's state banks swapping and selling USD for Yuan


Content Team
Image Credit: NewsBytes

Major Chinese state-owned banks have been trading Yuan for US Dollars (USD) in the onshore swap market and selling those Dollars in spot currency markets this week, as per Reuters. Over the past week, the Yuan has appreciated by 2%, reaching around 7.13 to the USD, its highest level in almost four months. Typically, state banks sell USD when the Yuan is facing depreciation pressure, making the timing of this move rather unusual.