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China Fires a Warning Shot at Yuan Speculators With Bank Bans

  • At least two banks banned from cross-border currency dealing
  • Offshore yuan erases 0.5% drop on intervention speculation
Bloomberg business news

PBOC Suspends Some Cross-Border Yuan Business

Updated on

China has a message for currency speculators: the free lunch is over.

The People’s Bank of China has suspended at least two foreign banks from conducting some cross-border yuan business until late March, according to people with direct knowledge of the matter. The clampdown comes as the growing offshore-onshore spread makes it profitable for those who skirt capital controls to buy the currency at a discount in Hong Kong and sell it in Shanghai.