Jump to content

China state banks plan curbs on metals, Forex Trades If U.S. Election Fuels Volatility

Rate this topic


Recommended Posts

Two major state-owned Chinese banks warned on Monday that they could restrict the trading of precious metals and foreign exchange products if this week’s U.S. presidential election fuels market volatility.

Bank of China 601988.SS3988.HK, the fourth-largest lender by assets, said it might curb or suspend such trade, while Bank of Communications 601328.SS said it was taking steps to potentially limit spreads and transactions during the election.

“We expect volatility in the precious metals and foreign exchange market to increase significantly between Nov. 3 and Nov. 4,” Bank of China said in an online statement.

“Market liquidity will be notably lowered, and market risks may intensify.”

The bank said it might suspend trading of affected products “under the extreme scenario of a liquidity crunch”, and cap trading volumes during the election.

Bank of Communications said it would make “flexible adjustments” and restrict transactions based on international market quotations and market liquidity.

Both lenders said curbs would be lifted once the market stabilized, however.

Traders and FX brokers are closely watching the outcome of the election, with Republican President Donald Trump trailing Democratic challenger Joe Biden in national opinion polls.

Also read: Compare Now | Demo Trading Vs. Live Trading

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • 👍 Join TopGold.Forum Now

    We Connect  Money Makers With TOP Earning Opportunities!

    Join over 25,000 members and 700 businesses on their journey to strike GOLD. 💰🍾👍

    👩 Want to make money online? 
    💼 Represent a company? 

⤴️-Paid Ad- TGF approve this banner. Add your banner here.🔥

×
×
  • Create New...