China relaxes FX regulations in response to Fed rate rise – FT
10:52 pm Thursday, September 29th, 2022
(Reuters) – Officials from the State Administration of Foreign Exchange (SAFE) privately communicated a relaxation of the informal limits on transaction in China’s interbank market to foreign exchange brokers on Wednesday last week due to the Fed’s interest rate rise of 0.75 percentage points, the Financial Times reported, citing two people familiar with the matter.
The renminbi’s sharp fall over the past week started after regulators told traders that they were relaxing the foreign exchange trading limits, the report added.
The report, citing one of the people said the move to relax was made because policymakers “believed it was the proper time to let the renminbi depreciate a bit”.
(Reporting by Sneha Bhowmik in Bengaluru; Editing by Jacqueline Wong)
