China’s central bank has asked some of the country’s biggest lenders to refrain from immediately squaring their foreign exchange positions in the market and to run open positions for a while to alleviate downside pressure on the yuan. According to two sources with knowledge of the matter, this informal “window guidance” has been issued by the People’s Bank of China to banks that have conducted U.S. dollar sales to clients. Most banks are typically permitted to run a net long or short position in spot dollar-yuan markets within defined limits. The directive is the latest effort by China to smooth … Continue reading China’s Dollar Purchases Under Scrutiny as Banks Told to Stagger Buys