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Chinese exporters look to intricate workaround to retain dollar earnings

Chinese exporters look to intricate workaround to retain dollar earnings
In trying to retain their dollar earnings as the yuan stumbles, Chinese exporters are resorting to using currency swaps to manage that. According to China's FX regulator, domestic firms swapped a record $31.5 billion for yuan with banks in the onshore forward market in July.This allows the exporters to place their dollars with the banks and get yuan instead, but through a forward/swap contract that will eventually reverse said flows and receive dollars again. It's a neat little workaround and on... Read More
Posted: Aug 31 2023, 09:16
Author Name: forexlive
Views: 102469

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