Standard Chartered, Deutsche Bank, and UOB have been suspended by the People's Bank of China (PBoC) from some foreign-exchange business in China until the end of March; no explanation has been offered and Standard Chartered has appealed the decision. Liquidation of spot positions for clients and a range of activities related to cross-border, onshore and offshore businesses are all covered by the suspension. The PBoC has warned the banks that if they engage in lucrative foreign exchange business by taking advantage of the different exchange rates, it would move to implement further bans. OCBC Bank and United Overseas Bank (DBS Group Holdings) have confirmed that they have been allowed to continue trading on the foreign exchange in China. Some analysts suggest that China may be trying to curb excessive speculation as the yuan weakens. Reports suggest that the central bank is also mulling over new tools to limit volatility, including limiting arbitrage between the currency's onshore and offshore rates and speculative rates, especially involving foreign companies' deals.
Standard Chartered, Deutsche Bank, and DBS Group Holdings have been suspended by the People's Bank of China (PBoC) from some foreign-exchange business in China until the end of March; no explanation has been offered and Standard Chartered has appealed the decision. Liquidation of spot positions for clients and a range of activities related to cross-border, onshore and offshore businesses are all covered by the suspension. The PBoC has warned the banks that if they engage in lucrative foreign exchange business by taking advantage of the different exchange rates, it would move to implement further bans. OCBC Bank and United Overseas Bank (UOB) have confirmed that they have been allowed to continue trading on the foreign exchange in China. Some analysts suggest that China may be trying to curb excessive speculation as the yuan weakens. Reports suggest that the central bank is also mulling over new tools to limit volatility, including limiting arbitrage between the currency's onshore and offshore rates and speculative rates, especially involving foreign companies' deals.