China Said to Consider Options to Support Yuan, Curb Outflows – Bloomberg

[kreslik.news]

China is reported to be preparing contingency plans for possible scenarios for the yuan and capital outflows this year, according to a Bloomberg report.

The authorities have allegedly used stress tests, models and field research, while financial regulators have already encouraged some state-owned enterprises to sell foreign currency. If deemed necessary, they will also order them to temporarily convert some holdings into yuan under the current account.

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The reported plans come amid increasing pressure on the yuan from a resurgent dollar, rising capital outflows and concern that ... (read more)