🇨🇳⚔️ 🇺🇸 China Cuts Dollar Purchases Amid Escalating Trade Tensions with the U.S.
As trade tensions with the United States intensify, Chinese authorities are tightening control over the currency market. The People’s Bank of China has reportedly instructed state-owned banks to scale back dollar purchases and closely monitor client transactions in an effort to curb the yuan’s decline and prevent capital flight.
The yuan has already dropped 1.3% in April, hitting a new low on the offshore market. While Beijing appears willing to tolerate a mild depreciation to support exports, it is trying to avoid triggering financial panic.
According to media reports, China’s top leadership is expected to convene on Wednesday to formulate emergency measures aimed at stabilizing the stock market and bolstering the broader economy.
🔴 @DDGeopolitics
As trade tensions with the United States intensify, Chinese authorities are tightening control over the currency market. The People’s Bank of China has reportedly instructed state-owned banks to scale back dollar purchases and closely monitor client transactions in an effort to curb the yuan’s decline and prevent capital flight.
The yuan has already dropped 1.3% in April, hitting a new low on the offshore market. While Beijing appears willing to tolerate a mild depreciation to support exports, it is trying to avoid triggering financial panic.
According to media reports, China’s top leadership is expected to convene on Wednesday to formulate emergency measures aimed at stabilizing the stock market and bolstering the broader economy.
