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China Exporters Flock to Swap Trading to Hold on to US Dollars
A tool used by China exporters to get their hands on the yuan temporarily has hit a record, a sign they may be reluctant to permanently transfer their dollar holdings into the local currency. Chinese firms swapped a record $30.5 billion for yuan via onshore banks last month, according to data released Friday by the State Administration of Foreign Exchange that goes back to 2015. Through such trades, companies can access yuan for their operational cash demands without abandoning their dollar holdings since the currencies can be swapped back at a future date. The appeal of holding dollars remains strong for some ... (full story)