A state investigation begun in April of last year has since uncovered almost RMB61.36 billion (US$10 billion) in fraudulent currency deals in China, The Wall Street Journal reported, citing Wu Ruilin, deputy director of the supervision and inspection department of China’s State Administration of Foreign Exchange. Wu said the crackdown ultimately covered 24 provinces and cities, including Qingdao. Allegations that traders there and in another port city had fraudulently used metal stockpiles as collateral for multiple loans roiled markets earlier this year. Now foreign banks and commodities firms have exposure to potential losses there of nearly US$1 billion, while exposure of Chinese banks could stretch into the billions of dollars, according to court filings, public bank statements and analysts’ estimates.
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