China's State Banks Engage in Dollar-Yuan Swaps and Sales, Say Sources

China's major state-owned banks have been observed swapping yuan for US dollars in the onshore swap market and selling those dollars in the spot market to support the yuan's recovery. This move is aimed at encouraging domestic exporters to settle their foreign exchange receipts into the local currency and boosting the yuan's performance towards the year-end. Chinese state banks often act on behalf of the central bank in the foreign exchange market, but they also trade on their own behalf.