China’s major state-owned banks sold large amounts of US dollars on Monday using a combination of swap and spot transactions, Reuters reported, citing sources in the banking sector.

After that, the forward exchange rate fell to 6.95 yuan per dollar, according to the agency. One of the agency’s sources indicated that the operation apparently did not affect China’s foreign exchange reserves ($3 trillion).

On September 26, the People’s Bank of China lowered the yuan to 7.0722 per dollar, the lowest level since June 30, 2022. The yuan has weakened more than 11% against the dollar this year. The Chinese Central Bank increased the reserve ratio on forward contracts on the dollar from zero to 20%.