Offshore Yuan Sees Biggest Daily Gain as China Raises Key Parameter for Cross-Border Financing

Major Chinese state-owned bank were said to intervene the onshore and offshore yuan by selling US dollar.

BEIJING, October 26  (TMTPOST)— The offshore yuan soared by the most on record following Chinese government’s new signal to boost the currency against U.S. dollar hit new low earlier this week.

Source: Visual China

The onshore yuan rose by 1.3% at 7.1707 per dollar at night trading session, ending Wednesday with the highest level in nearly two weeks. The offshore yuan last traded at 7.1875 at 04:59 a.m. Beijing Time Thursday after jumping a record daily gain of 1.8% to 7.1822, a strong midday level not seen since October 14.

In order to improve the cross-border source of funding for domestic businesses and financial institutions, the People’s Bank of China and the State Administration of Foreign Exchange decided to raise the macro-prudential adjustment parameter for companies and banks from 1 to 1.25, the central bank announced earlier Wednesday. The move suggests the parameter’s first raise since March 11, 2020 and the first adjustment since January 2021, when the parameter was cut from 1.25.

The upward revision of the parameter, as a multiplier that determines the upper limit of outstanding cross-border financing an institution can have, can encourage Chinese banks and companies raise more funds from overseas, thus further hold the yuan exchange steadier by increasing the US dollar supply in mainland China. The move was deemed as Beijing’s latest effort to alleviate the increasing depreciation pressure of yuan, which just hit a new 2008 low to 7.3749 Tuesday due to the strengthening U.S. dollar.   

Besides the financial authorities’ move, yuan could also receive more support from banks. Major Chinese state-owned bank sold U.S. dollars in both onshore and offshore markets to shore up yuan, Reuters cited people familiar with the matter. During the intervention, the state banks was said to unusually execute sales in onshore market in early U.S. trading hours, since they are normally active in offshore market to affect the onshore yuan. A Bloomberg report also said traders found suspected state bank intervention. The intervention offers some near-term stabilization for the yuan after the rapid drop over the last few days, according to Stephen Chiu, chief Asia FX & Rates strategist at Bloomberg Intelligence.   

转载请注明出处、作者和本文链接
声明:文章内容仅供参考、交流、学习、不构成投资建议。
想和千万钛媒体用户分享你的新奇观点和发现,点击这里投稿 。创业或融资寻求报道,点击这里

敬原创,有钛度,得赞赏

赞赏支持
发表评论
0 / 300

根据《网络安全法》实名制要求,请绑定手机号后发表评论

登录后输入评论内容

快报

更多

2024-12-25 23:00

大商所、郑商所夜盘收盘,PTA跌超1%

2024-12-25 22:51

国家电投集团年发电量创历史最好水平,超7000亿千瓦时

2024-12-25 22:46

涪陵榨菜谈调价:今年主力产品价格未有调整,榨菜酱产品降价

2024-12-25 22:35

刘建超会见日本外相岩屋毅

2024-12-25 22:29

提示:美股今日休市

2024-12-25 22:27

中房协发起“迎新年购房安家活动”倡议

2024-12-25 22:21

北大医药:公司实际控制人变更为徐晰人

2024-12-25 22:21

农业农村部举办人工智能专题报告会

2024-12-25 22:11

近30家企业参与,储能行业将召开防止内卷式竞争闭门研讨会

2024-12-25 22:10

北京市大兴区挂牌两宗地块,起始价23.2亿元

2024-12-25 21:56

深圳个人养老金定存利率:大型商业银行在2%左右,养老保险产品综合收益可到3.9%

2024-12-25 21:47

全国首个“低空+高铁”跨城联运场景在杭州投运

2024-12-25 21:28

通义千问发布业界首个开源多模态推理模型QVQ-72B-Preview

2024-12-25 21:25

《中华人民共和国增值税法》全文公布:销售不动产税率为百分之九

2024-12-25 21:19

*ST卓朗:收到上交所拟终止公司股票上市事先告知书

2024-12-25 21:18

理想汽车会做人形机器人吗?李想:100%会做,但不是现在

2024-12-25 21:07

万安科技:实控人拟减持不超3%股份

2024-12-25 21:06

专家解读专项债券管理新政:可减少在途时间,避免“资金等项目”

2024-12-25 21:05

岭南股份:可转债偿付方案正加快制定,并尽量调动多方资源推进催收工作

2024-12-25 21:02

韩国加密资产市场迅猛发展,日均交易额逼近股市

扫描下载App