# How China talked markets out of a run on the yuan By Reuters

> China has stabilised the yuan through coordinated state bank buying and informal guidance to bankers, rather than the large reserve-burning intervention used in 2015. Interviews with 28 market participants described at least two dozen steered trading actions this year to resist downward pressure. The approach has prevented a disorderly slide but has also reduced trading volumes in parts of the FX market.

- Date: 2023-12-30 · published 2023-12-30T12:00:00.000Z
- Category: policy · region China · magnitude low
- Page: https://feedsoft.ai/events/11839-how-china-talked-markets-out-of-a-run-on-the-yuan-by-reuters
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Managed currency stability keeps Chinese import demand for feed ingredients steadier than a disorderly devaluation would. The policy has little direct effect on commodity prices.

## Read by commodity

- USDCNY: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2017-01-03 | [China's yuan may see more volatility vs dollar after basket change \| Reuters](https://feedsoft.ai/events/10252-china-s-yuan-may-see-more-volatility-vs-dollar-after-basket-change-reuters.md) | -0.1% | -1.0% |
| USDCNY | 2017-09-11 | [China central bank relaxes yuan hedging rules as currency strengthens, capital outflows ease \| Reuters](https://feedsoft.ai/events/7799-china-central-bank-relaxes-yuan-hedging-rules-as-currency-strengthens-capital.md) | +1.1% | +2.7% |
| USDCNY | 2024-11-26 | [China Draws a Red Line for the Yuan as Trump Risks Return - Bloomberg](https://feedsoft.ai/events/27629-china-draws-a-red-line-for-the-yuan-as-trump-risks-return-bloomberg.md) | +0.6% | +0.8% |
| USDCNY | 2025-12-04 | [EXCLUSIVE: China state-owned banks soak up dollars to slow yuan gains, sources say \| Reuters](https://feedsoft.ai/events/21739-exclusive-china-state-owned-banks-soak-up-dollars-to-slow-yuan-gains-sources.md) | +0.0% | -1.1% |
| USDCNY | 2017-06-26 | [China's yuan tweaks reflect Fed fears - Nikkei Asia](https://feedsoft.ai/events/11182-china-s-yuan-tweaks-reflect-fed-fears-nikkei-asia.md) | -0.8% | -1.3% |

## Sources

- investing.com: https://www.investing.com/news/economy/how-china-talked-markets-out-of-a-run-on-the-yuan-3265152
- reuters.com: https://www.reuters.com/markets/currencies/how-china-talked-markets-out-run-yuan-2023-12-30/
- thehindu.com: https://www.thehindu.com/business/how-chinese-regulators-talked-markets-out-of-a-run-on-the-yuan/article67697431.ece

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.