China’s central bank has instructed top lenders to keep their foreign exchange positions open to reduce yuan downward pressure.

Banks are not to square their inter-bank foreign exchange holdings after U.S. dollar sales to clients until their spot foreign exchange position reaches a specific level.

This will absorb some of corporations’ hefty dollar purchases and sit on banks’ books for a while, alleviating yuan downward pressure.

The yuan is under pressure from widening yield differentials with other major countries and a weakening domestic economy.