SHANGHAI Dec 5 Bank of China, one of the
country's "Big Four" state-owned banks, said on Monday it is
still conducting foreign exchange sales for clients in Shanghai
with "reasonable" demand, adding that a report that it was
limiting forex sales was not factual.
Citing two sources with knowledge of the matter, Reuters
reported on Friday that Bank of China's Shanghai branch had
begun to limit corporate customers' ability to purchase foreign
currency, as authorities look to shore up the weakening yuan
The Shanghai branch of BoC "strictly adheres to the
management requirements of the regulators" and "foreign exchange
sales are being processed normally (for clients) with real trade
background and reasonable demand," it said in a statement
emailed to Reuters on Monday.
Sources told Reuters that bankers at BoC Shanghai branch
began last week to discourage companies wishing to change yuan
Those firms which insisted on doing so were told they would
be restricted to exchanging a maximum of $1 million. Previously,
there had been no restrictions.
BoC Shanghai said the Reuters report was "not consistent
The yuan has fallen nearly 6 percent so far this year
against the dollar and the government has ratcheted up efforts
to stop capital outflows and snuff out expectations that the
yuan would continue to drop.
(Reporting by John Ruwitch and Engen Tham; Editing by Kim