(Tiper Stock Exchange) – Chinese authorities they would have urged the large state banks Chinese ad step up intervention on the foreign exchange market this week, aiming to stabilize as soon as possible and avoid excessive volatility of the yuandropped on a level of 7.35 per dollar.
This is what Bloomberg reports today, according to which the Chinese authorities are allegedly developing a series of tools such as the reduction of compulsory foreign exchange reserves of banks, to allow purchases of local currency, and they would also be verifying the existence of speculative operations by Chinese companies, aimed at accelerating the decline of the national currency.
According to Reuters, the Chinese banks they would have already been seen selling dollars for yuan on the onshore and offshore markets, in particular on the London and New York markets.
This week the central bank (PBO extension) attempted to lift investor sentiment by announcing a surprise cut in interest rates and huge short-term liquidity injections in an attempt to calm the turmoil over the housing market crisis. Despite these measures, however, the yuan continued to slide, reaching its lowest level since 2007.
Meanwhile, the central bank of chinain its monetary policy report, released today, assured that “it will prevent excessive adjustment of the yuan and reiterated that he wanted to “maintain the stability of the exchange rate at a reasonable and balanced level to resolutely prevent the risk of exchange rate overshoot,” but also added that foreign exchange market is currently online with the fundamentals.
The PBOC also spoke about the most recent ones turmoil in the real estate marketstating that it intends to “adapt to the new situation of major changes in the relationship between supply and demand in the real estate market” and “timely adjust and optimize real estate policies to promote stable and healthy development of the market”.