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State Banks

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finance1 year ago

"State Banks Intervene as China's Yuan Hits Four-Month Low, Global Stocks Dip"

China's yuan fell to a four-month low against the dollar, prompting state-owned banks to intervene and defend the currency. Market sources revealed that state banks bought yuan for dollars, and the currency closed at 7.2275 per dollar, 281 pips softer than the previous session. The yuan's decline is attributed to growing expectations of further monetary easing to support the economy, as well as a stronger dollar and depreciation of the Japanese yen and other Asian currencies. The People's Bank of China set the midpoint rate weaker than market projections, indicating potential further easing measures. The sudden weakness in the yuan also impacted stock markets, with the Shanghai stock index down 1%.

via Reuters|
#chinese-yuan#finance#market-expectations
finance2 years ago

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.

via Reuters|
#china#finance#foreign-exchange-market
finance2 years ago

China's State Banks Act to Stabilize Offshore Yuan Amid Currency Weakness

China's major state-owned banks are reportedly actively buying up offshore yuan in an effort to stabilize the currency, which has been facing pressure due to a darkening economic outlook and strain in the property sector. By tightening offshore yuan liquidity, the banks aim to raise the cost of shorting the Chinese yuan and potentially stabilize its value. The move comes as the yuan has weakened over 5% against the US dollar this year. The offshore yuan rallied following the state bank's actions.

via Reuters|
#china#currency-weakness#economic-outlook
business2 years ago

Experts optimistic as China takes action to stabilize yuan's decline.

China's state banks sold dollars for yuan, and the People's Bank of China set a stronger-than-expected trading band for its currency, indicating that the authorities are growing increasingly uncomfortable with its quickening slide. The yuan has fallen about 4% on the dollar in two months as flagging consumer confidence and a soggy property market have sapped momentum from the post-pandemic recovery. The moves showed official unease at the yuan's downward momentum and that they could slow but perhaps not halt a decline, given the dour economic outlook.

via Reuters.com|
#business#china#currency
finance2 years ago

China's State Banks Slash Deposit Rates to Stimulate Economy

China's biggest state banks, including Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, and China Construction Bank, have cut interest rates on yuan deposits, which could ease pressure on profit margins and reduce lending costs. This is the second such cut within a year, with previous action taken in September. The move is expected to push savings into consumption and investment and ease the pressure on banks' net interest margins, opening the door for further monetary stimulus.

via Reuters|
#china#economy#finance