#VantageOnFirstpost: China’s covert strategy to support the yuan using foreign-exchange swaps is putting its banks at risk of billions in losses while creating easy profits for savvy investors. State-run Chinese banks have built over $100 billion in short positions on the dollar to stabilise the currency without draining foreign reserves. However, this move has led to significant losses as the yuan weakened earlier this year. This strategy shields the People’s Bank of China from international sc
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