China Banks Buy More Dollar Forwards as Bets on Weak Yuan Wane
- Lenders bought net 8.6 billion yuan of FX forwards in May
- Data suggest investors turn less bearish on currency: analyst
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China’s banks bought more foreign-currency forwards than they sold in May for the first time in 17 months, signaling the lenders’ clients have turned more optimistic on the yuan as capital outflows abated.
Banks bought a net 8.6 billion yuan ($1.3 billion) of forwards from customers last month, the State Administration of Foreign Exchange said in a statement posted on its website on Monday. That compares with record net selling of 428.4 billion yuan in August, when policy makers devalued the currency, and is the first time the figure turned positive since December 2014.