Citing two sources with knowledge of the matter, Reuters reported on Thursday, the People’s Bank of China (PBOC) urged some of the country’s biggest banks to leave their forex market open positions for a while in order to alleviate downside pressure on the Yuan.

Key takeaways

PBOC asks some banks to hold off on immediate Dollar purchases in the interbank market to square foreign exchange positions.

Banks told to hold such open FX positions until net exposure hits a certain level.

Market reaction

Despite China’s central bank’s efforts to stabilize the Yuan, USD/CNY is trading better bid near 7.2710, as of writing.