PBOC tightens grip on Chinese companies’ bulk US dollar amid yuan’s sharp weakening – report

 

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The People’s Bank of China is tightening its grip on bulk US dollar purchases by domestic companies amid sharp weakening of the Chinese yuan, reported Reuters citing sources.

Chinese companies that need to buy $50 million or more of US dollar are now required to get approval from the central bank, the report said. 

The PBOC had held a meeting with some commercial banks over the weekend on the matter, the report said. 

The central bank had warned some banks about bulk US dollar purchases on behalf of their corporate clients, per the report.