China central bank temporarily suspends some FX business of several foreign banks
[SHANGHAI] China's central bank has temporarily suspended some foreign exchange businesses of several foreign banks until the end of March, three sources with direct knowledge of the development told Reuters on Wednesday.
Included among the suspended services was liquidation of spot positions for clients and some other services related to cross-border, onshore and offshore businesses, the sources said.
The People's Bank of China (PBOC) sent a notice to the impacted foreign banks on Monday, the sources said.
The sources, speaking on the condition that the banks not be named, said they had seen the relevant directive.
The PBOC, when contacted by Reuters, had no immediate comment.
The move might have the effect of helping stabilise the yuan's exchange rate and cushion capital outflows due to the Chinese currency's recent depreciation.
REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Banking & Finance
AI risks to financial stability are already a central bank worry
DBS CEO Piyush Gupta sells S$2.7 million worth of bank shares
Over S$646,000 spent to store, maintain, safeguard assets in money laundering case
Philippines eyes US$2 billion in its first global bond this year
UniCredit jumps past 60 billion euro market cap to join elite club
New Thai finance minister downplays row with central bank