China urges FX hedging as yuan hits four-year high
China has instructed banks to encourage corporate hedging to shield exporters from currency risks. The yuan has risen over four percent this year, driving record hedging activity.
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China's foreign exchange regulator has instructed banks to boost corporate currency hedging as the yuan climbs to a four-year high against the USD/CNH. The informal guidance comes amid growing currency losses for exporters across the country. Policymakers are pushing firms to prepare for further appreciation or heightened market volatility.
