The People's Bank of China has asked the country's state-owned banks to slash its purchases of US dollars to stop a decline in the renminbi, Reuters reported Wednesday, citing people with direct knowledge of the matter.

PBOC's directive comes as the redback faces downward pressure due to the tariffs imposed by the administration of US President Donald Trump, Reuters said.

The central bank also asked major banks to intensify checks on dollar purchase orders for their clients, according to Reuters.

The move is seen as a way for the PBOC to control speculative trades, according to Reuters.

The RMB has lost 1.2% to the USD on a month-to-date basis.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)