China Stabilizes Yuan in 2022 Through Bank Guidance and Monitoring Instead of Outright Intervention
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China has stabilized the yuan this year through state bank buying and guidance to bankers, instead of outright intervention like in 2015.
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Regulators gave warnings to steer currency traders, diverging official guidance from market expectations.
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State banks conducted targeted yuan buying around key levels to contain volatility.
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Banks faced pressure to cut dollar holdings and trading, reducing market liquidity.
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Exporters and banks have faced increased monitoring of currency flows and plans by Chinese authorities.