China's state banks seen selling dollars for yuan in London and New York hours
China's major state-owned banks were seen busy selling U.S. dollars to buy yuan in both onshore and offshore spot foreign exchange markets this week, people with direct knowledge of the matter said, in an attempt to slow the yuan's depreciation.
https://www.reuters.com/markets/currencies/chinas-major-state-banks-sell-dollars-yuan-london-ny-hours-sources-2023-08-17/Open linkView original on lemmy.world
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Fairly standard central bank activity, nothing unusual in and of itself.
Except China is normally devaluing it's currency to keep exports competitive, this is the opposite
Sure, it's been a while since China had to protect its currency from negative pressure, and it's in reuters because it's a clear market signal. However a softening economy isn't unusual generally, just a first in decades for China.
It's as much a sign that as a country they're maturing past the developing country growth wave they've been on, and hitting the cycles that developed nations need to manage. Couple that with a trade war with the US slowing down key parts of the economy and it's notable but not surprising.
Those predicting a wholesale economic collapse will however be just as disappointed as they were 12months ago when predicting a real estate lead crash.