Yuan Forwards Drop on Bets PBOC Cut Intervention Amid IMF Risk
- IMF requested China to disclose derivatives data, WSJ reports
- Traders bet PBOC reduced support in yuan forwards, OCBC says
Yuan forwards declined for a third day in onshore trading on bets China’s central bank is scaling back use of the derivatives following a newspaper report that the IMF requested details of its positions.
The International Monetary Fund has asked China’s central bank to disclose holdings of forwards and futures, which could shed light on more opaque methods of intervention used to support the yuan, the Wall Street Journal reported on Monday. Zhu Min, the Washington-based lender’s deputy managing director, said on Tuesday the fund didn’t seek more foreign-exchange information from China. The denial didn’t kill off speculation that the lender had sought the data, according to Mizuho Bank Ltd. A gauge of the dollar’s strength rose to a one-week high on Wednesday.