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EXCLUSIVE-People’s Bank of China instructs state-owned banks to prepare for intervention to prevent yuan depreciation = related sources | Reuters

The People’s Bank of China (PBOC) has instructed major state-owned banks to prepare to buy yuan and sell dollars in offshore markets to stem the yuan’s depreciation. Reuters/Dado Ruvic/Illustration

[香港 29日 ロイター] – The People’s Bank of China (PBOC) has instructed major state-owned banks to prepare to buy yuan and sell dollars in offshore markets to stem the yuan’s depreciation. Four sources told Reuters.

State-owned banks have been instructed to inspect offshore yuan holdings at their overseas branches, including Hong Kong, New York and London, and prepare to sell dollars, the people said.

The yuan has fallen more than 11% against the dollar this year, its biggest annual drop since 1994, but a flurry of yuan buying and dollar selling could underpin the exchange rate.

One of the people familiar with the matter said the scale of the dollar sell-off this time would be quite large.

The People’s Bank of China did not respond to Reuters’ request for comment.

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