SHANGHAI—China’s central bank intervened in the foreign-exchange market Tuesday to prop up a weakening yuan, two people familiar with the matter said, as Beijing adopted a broad suite of measures to stem a sell of in the country’s stock matket.
The move came after the People’s Bank of China said it would pump 130 billion yuan ($19.9 billion) into the financial system—the biggest single-day injection since Sept. 8—as tumbling stocks and a sliding currency threatened to further erode confidence in the world’s No. 2 economy.
The PBOC used some of the nation’s biggest state-run banks as agent entities to buy the yuan and sell U.S. dollars, helping the Chinese currency reverse its deep losses from Monday, the people, who declined to be named, told The Banker Pakistan.
One dollar was trading at 6.5199 yuan, down from 6.5338 yuan at Monday’s close.
The Shanghai Composite Index was down 1.6% at 3242.74, after a 6.9% slump Monday due to concerns about a weakening manufacturing sector and a falling yuan.