Amidst a global move towards de-dollarization and increasing demand for yuan-based transactions, the efforts of Chinese policymakers to prop up their currency have increasingly gained traction.
In efforts to bolster the yuan, China’s major government-controlled banks began offloading their US dollar holdings to acquire the Chinese currency in both domestic and international spot markets during the early Asian trade session on Tuesday, media has reported, citing sources familiar with the situation.
As per reports, in September 2022, China’s central bank urged state banks and their branches overseas, including Hong Kong, London, and New York, to get ready to sell off the dollar for the domestic currency in international markets, intensifying their actions to halt the drop of the yuan.