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Dollar bills (Photo by Alexander Schimmeck via Unsplash)

China allegedly asks banks to delay dollar buying to slow yuan depreciation: report

The yuan hit an eight-month low in July.

China’s currency regulators have reportedly asked some of its commercial banks to reduce or postpone their purchases of US dollars in a bid to slow the yuan’s depreciation, reports Reuters, based on two sources. 

One source said that regulators were “emphatic” that banks should hold off dollar purchases under their priority trading accounts reportedly due to the recent yuan depreciation.

The value of Chinese yuan hit an eight-month low in July, and has lost 3.6% against the dollar since the start of the year to rank as one of Asia's worst performing currencies.

The People's Bank of China (PBOC) has yet to respond to Reuthers’ request for comment as of press time.

ALSO READ: China taps banks to bolster cross-border trade, offer financial support

The State Administration of Foreign Exchange (SAFE) told Reuters that exchange rate expectations were stable.

"The yuan exchange rate expectations are stable, and the foreign exchange market has the foundation to meet authentic and compliant FX needs," SAFE said in response to a Reuters query.

Read more from Reuters.

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