Economy

Exclusive-China FX regulator interviews banks about their positioning as yuan plunges


© Stocksak. FILE PHOTO – Chinese 100 yuan banknotes can be seen at a counter at a branch of a Chinese commercial bank in Beijing, China, on March 30, 2016. REUTERS/Kim Kyung-Hoon

SHANGHAI/BEIJING – China’s foreign currency regulator sent out a survey to several banks late Monday asking about their position in the currency market. Three sources with direct knowledge of this matter told Stocksak.

The survey comes at a moment when the U.S. dollar is strong and the offshore unit is experiencing its lowest levels since 2008.

One source said that the FX regulator had asked about our market views and our position.

Another source said that the survey was done around the time the Yuan “overreacted” because some market participants were “maliciously shortening the yuan”.

Two sources claimed that the State Administration of Foreign Exchange, (SAFE), made it clear that the survey was urgent.

Sources spoke on condition that they remain anonymous because they are not authorized to discuss the matter.

Stocksak’s request for comment was not immediately answered by the SAFE.

News Source and Credit

Stocksak Editorial

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