China told brokerage firms that they should reduce their private exchange rate transactions this week.
As China steps up its defenses against its currency, it has told some brokers to reduce private transactions in the foreign exchange market.
According to Bloomberg, the People’s Bank of China earlier this week asked some brokerage firms to reduce special transactions in foreign exchange positions, without giving specific guidance on the limit of transaction volume.
Some of these firms have virtually ceased private trading since then, sources said.
Although brokerage firms are not as large currency trading participants as banks, where most transactions are made on behalf of clients, the decision is the latest in a series of measures to support the yuan, which fell to a 16-year low earlier this month.