China's State Banks Take Action to Stabilize Yuan: Selling Dollars Offshore
China's major state-owned banks have been observed selling dollars to purchase yuan in the offshore spot market in an effort to slow down the decline of the yuan. The country's central bank has also relaxed a cross-border financing rule, making it easier for domestic firms to raise funds from overseas markets and alleviating depreciation pressure on the yuan. Despite a slight rebound, the yuan is still down approximately 4% against the dollar this year, making it one of the worst-performing Asian currencies.