TechFlow, April 9 — According to Reuters, sources revealed that the People's Bank of China (PBOC) has asked major state-owned banks to reduce dollar purchases in order to prevent a sharp depreciation of the yuan. Through window guidance, the central bank has instructed these banks to suspend proprietary dollar buying and strengthen scrutiny of customer dollar purchase orders.
The report noted that against the backdrop of the U.S. imposing 104% tariffs on Chinese goods, policy advisers at the central bank stated that it will not resort to currency devaluation to ease export and economic pressures. Instead, the PBOC prefers measures such as subsidies, tax rebates, or market diversification to support key enterprises.
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