China State Banks Plan Curbs on Metals, Forex Trades If U.S. Election Fuels Volatility




BEIJING/SHANGHAI (Reuters) – Two major state-owned Chinese banks warned on Monday that they could restrict 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.”

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