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Some China Banks Change Fixing Models as Yuan Weakness Deepens

  • At least two lenders lean against yuan drop in fixing: sources
  • Onshore spot rate had hit a two-year low on stronger dollar
Views Of Currency Exchanges In Hong Kong
Photographer: Anthony Kwan/Bloomberg

Some Chinese banks have pushed back against the yuan’s recent depreciation, effectively helping to limit further declines in the currency versus the dollar as authorities try to curb one-way bets. 

The People’s Bank of China set its daily yuan reference rate at stronger-than-expected levels this week, signaling its desire to slow the pace of the currency’s drop. At least two banks that submit fixing quotations tweaked their models to lean against the yuan weakness, according to people at the banks who declined to be identified as they are not authorised to speak to the media. There are 14 such banks that submit daily quotations for the fixing calculation.