Global equity markets rose while the U.S. dollar rebounded against major currencies on Friday as new data strengthened concerns about surging inflation and more heated economic activity from pent-up demand.
By Reuters Staff
(Updates with details and background)
SHANGHAI, May 27 (Reuters) - Chinese regulators have allowed smaller banks to borrow more from overseas, three sources with direct knowledge of the matter said, a move that mainly benefits the local branches of foreign banks who have reported a shortage of foreign-currency capital.
The sources told Reuters that some of these lenders lobbied against changes to cross-border financing rules at the start of the year which have significantly lowered their loan portfolios.
Some of the foreign banks in China had been forced by these regulations to significantly reduce foreign exchange loans to Chinese domestic clients, while some held these loans on their books at levels many times higher than required.
Sudan's central bank said on Wednesday it had allocated $16.2 million out of a possible $40 million in its first weekly foreign exchange auction aimed at providing dollars to importers of basic goods through the banking system.
Democratic U.S. President Joe Biden plans to propose $6 trillion in U.S. federal spending for the 2022 fiscal year, rising to $8.2 trillion by 2031, the New York Times reported on Thursday, citing documents it saw. (Writing by Susan Heavey; editing by John Stonestreet)
Chinese regulators granted some banks a higher quota for foreign currency-denominated loans that they lend to domestic clients, three sources with direct knowledge of the matter told Reuters.