China's Central Bank to Tighten Oversight on Bulk Dollar Purchases - Sources

China's central bank, the People's Bank of China (PBOC), is increasing its scrutiny of bulk dollar purchases by domestic firms as the Chinese yuan faces mounting depreciation pressure. Companies seeking to purchase $50 million or more will now require approval from the PBOC. The central bank has warned some lenders about their significant dollar purchases on behalf of corporate clients. This move comes as the yuan has declined by about 6% against the US dollar this year, reaching levels last seen during the 2008 global financial crisis. China has been taking steps to slow the pace of yuan declines, including setting stronger-than-expected midpoint fixings and increasing the supply of dollars.