CHINA'S STATE BANKS REPORTEDLY SELLING U.S. DOLLARS IN DOMESTIC FOREX MARKET TO SLOW YUAN DECLINE
*CHINA'S MAJOR STATE-OWNED BANKS BEGIN SELLING U.S. DOLLARS IN FOREIGN EXCHANGE MARKET TO PREVENT RAPID DECLINE IN CHINESE YUAN
Here they come: China starts selling dollars to halt USD surge. BOJ next
On November 4, 2024, the Federal Reserve's overnight reverse repurchase agreement facility saw a significant decline in participation, with 41 participants contributing a total of $155 billion. This marked a steep drop from a record high of $2.55 trillion recorded on December 30, 2022. The following day, November 5, 57 counterparties took $171.885 billion at the Fed's reverse repo operation, while the balance of the facility decreased to $144.2 billion, the lowest since April 2021. The People's Bank of China (PBOC) also engaged in market operations, selling 18.3 billion yuan of 7-day reverse repos at an interest rate of 1.5% and reducing net open market operations by 364.5 billion yuan. Additionally, the Russian Central Bank announced a reduction in the daily volume of foreign exchange swap operations to 15 billion yuan. In a related effort, Chinese state banks reportedly began selling U.S. dollars in the domestic foreign exchange market to support the yuan, which was trading at 7.13 against the dollar.
