This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.guardian.co.uk/world/2013/may/06/yuan-falls-china-banks
The article has changed 4 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| Yuan falls as regulators clamp down on China's banks | Yuan falls as regulators clamp down on China's banks |
| (12 days later) | |
| China's yuan suffered its worst loss of the year on Monday after authorities issued regulations limiting banks' positions as part of a campaign to crack down on hot money inflows. | China's yuan suffered its worst loss of the year on Monday after authorities issued regulations limiting banks' positions as part of a campaign to crack down on hot money inflows. |
| Spot yuan was down by as much as 0.34% from Friday's close in afternoon trade, a huge fall by the standards of China's tightly controlled exchange rate, reaching a low of 6.1768 to the dollar. | Spot yuan was down by as much as 0.34% from Friday's close in afternoon trade, a huge fall by the standards of China's tightly controlled exchange rate, reaching a low of 6.1768 to the dollar. |
| The currency recovered somewhat in late trade to close at 6.1667, as the market digested the new regulations. | The currency recovered somewhat in late trade to close at 6.1667, as the market digested the new regulations. |
| The State Administration of Foreign Exchange released new rules late on Sunday tightening limits on long yuan positions that banks can hold for their own accounts. | The State Administration of Foreign Exchange released new rules late on Sunday tightening limits on long yuan positions that banks can hold for their own accounts. |
| The rules also restrict banks' freedom to offer foreign exchange loans, which Chinese firms typically use to profit from yuan appreciation. If the yuan rises against the dollar a dollar-denominated loan becomes cheaper to repay in yuan terms. | The rules also restrict banks' freedom to offer foreign exchange loans, which Chinese firms typically use to profit from yuan appreciation. If the yuan rises against the dollar a dollar-denominated loan becomes cheaper to repay in yuan terms. |
| The yuan's fall on Monday came despite a stronger central bank fixing, as dealers anticipated that the new rules would require banks to buy dollars in order to comply with the new position limits. | The yuan's fall on Monday came despite a stronger central bank fixing, as dealers anticipated that the new rules would require banks to buy dollars in order to comply with the new position limits. |
| Corporates could also be forced to switch from borrowing foreign currency to buying it. | Corporates could also be forced to switch from borrowing foreign currency to buying it. |
| Our editors' picks for the day's top news and commentary delivered to your inbox each morning. | Our editors' picks for the day's top news and commentary delivered to your inbox each morning. |
| Our editors' picks for the day's top news and commentary delivered to your inbox each morning. Enter your email address to subscribe. | Our editors' picks for the day's top news and commentary delivered to your inbox each morning. Enter your email address to subscribe. |
| Our editors' picks for the day's top news and commentary delivered to your inbox each morning. |