Bank of China says still conducting “reasonable” forex sales in Shanghai
SHANGHAI, Dec 5 (Reuters) – Bank of China, one of the country’s "Big Four" state-owned banks, said on Monday it is still conducting foreign exchange sales for clients in Shanghai with "reasonable" demand, adding that a report that it was limiting forex sales was not factual.
Citing two sources with knowledge of the matter, Reuters reported on Friday that Bank of China’s Shanghai branch had begun to limit corporate customers’ ability to purchase foreign currency, as authorities look to shore up the weakening yuan currency.
The Shanghai branch of BoC "strictly adheres to the management requirements of the regulators" and "foreign exchange sales are being processed normally (for clients) with real trade background and reasonable demand," it said in a statement emailed to Reuters on Monday.
Sources told Reuters that bankers at BoC Shanghai branch began last week to discourage companies wishing to change yuan into dollars.
Those firms which insisted on doing so were told they would be restricted to exchanging a maximum of $1 million. Previously, there had been no restrictions.
BoC Shanghai said the Reuters report was "not consistent with facts".
The yuan has fallen nearly 6 percent so far this year against the dollar and the government has ratcheted up efforts to stop capital outflows and snuff out expectations that the yuan would continue to drop.