China’s currency regulator in Shenzhen told banks under its jurisdiction to limit purchases of U.S. dollars for corporate clients, according to people familiar with the matter.
The limits don’t apply to banks’ purchases for proprietary trading or for customers who are individuals, the people said, asking not to be identified because they weren’t authorized to speak publicly.
An official at the State Administration of Foreign Exchange in Shenzhen said he couldn’t comment. Reuters earlier reported that SAFE had told banks in trading hubs including Shenzhen to limit purchases of dollars this month.
China’s authorities are wrestling with capital outflows and currency volatility as some investors try to profit from gaps between the onshore and offshore yuan rates. DBS Group Holdings Ltd. and Standard Chartered Plc are among banks temporarily suspended from some foreign-exchange business in China, according to people with knowledge of the matter.
— With assistance by Heng Xie