Exclusive: Chinese exporters using currency swaps to retain dollars as yuan sags

U.S. Dollar and Chinese Yuan banknotes are seen in this illustration taken January 30, 2023. REUTERS/Dado Ruvic/Illustration/File Photo Acquire Licensing Rights SHANGHAI/SINGAPORE, Aug 31 (Reuters) – Chinese exporters are using a complicated currency swap strategy to avoid converting their dollar earnings into yuan for fear of losing out on potential gains in the U.S. currency, official data and conversations with companies show. China’s state banks are counterparties to some of these swap transactions that allow exporters to exchange their dollars for yuan, suggesting the country’s currency regulator is comfortable with these trades even as authorities try to curb intense pressure…