PBOC to scrutinize bulk US Dollar purchases – Reuters

Market news

11 September 2023

PBOC to scrutinize bulk US Dollar purchases – Reuters

Citing three sources with direct knowledge of the matter, Reuters reported on Monday, the People’s Bank of China (PBOC) is stepping up its scrutiny of bulk US Dollar purchases by domestic companies, in the face of the rapid depreciation of the Chinese Yuan.

Key takeaways

Will scrutinize bulk dollar buying of $50 million and above.

US Dollar purchases of $50 million and above will need approval from the central bank.

The new guidelines are issued by the Chinese central bank, as the Chinese Yuan has lost 6% of its value against the US Dollar so far this year. USD/CNY was last seen trading at 7.2919, down 0.68% on the day.

AUD/USD clings to strong intraday gains on weaker USD, remains below mid-0.6400s

EUR/USD continues to trade higher around 1.0730, US CPI, ECB decision eyed

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