China regulator orders some banks to limit January dollar buying: sources

Shanghai

CHINA'S foreign exchange regulator has ordered banks in some of the country's major import and export centres to limit purchases of US dollars this month, three people with direct knowledge said on Friday, in the latest attempt to stem capital outflows.

The move comes as China reported its biggest annual drop in foreign exchange reserves on record in 2015, while the central bank has allowed a sharp slide in the yuan to multi-year lows, raising fears of more capital flight and panicking global markets.