China's major state banks sell dollars to defend yuan - sources
State banks often act on behalf of China's central bank in the foreign exchange market, but they could also trade on their own behalf or execute clients' orders.
Chinese Yuan and US dollar banknotes are seen in this illustration taken on 10 March 2023. File Photo: Reuters/Dado Ruvic
China's state banks were heavy sellers of dollars on Wednesday, three people with direct knowledge of their activity said, steadying the yuan as it came under pressure in currency trade.
State banks often act on behalf of China's central bank in the foreign exchange market, but they could also trade on their own behalf or execute clients' orders.
One of the people said the selling was "very forceful" to defend the yuan at around 7.1820 per dollar in the onshore spot market.
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All the sources spoke on condition of anonymity as they are not allowed to publicly discuss market conditions.
The state bank action effectively put a floor under the onshore yuan, which last traded at 7.1813 per dollar.
