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Chinese state banks have been buying yuan, adding to its rally during a week of broad dollar weakness. Market participants said the banks may be trying to speed gains and encourage exporters to convert more foreign exchange receipts into yuan.
State-led yuan buying pushes USDCNY lower and can make Chinese purchases of dollar-priced commodities relatively cheaper, though the effect is modest and policy-driven.
reuters.comNov 21, 2023After 362 past bearish macro events, Chinese Yuan (CNY per USD) moved a median -0.1% over 5 sessions (42% higher; middle half -0.4% to +0.1%), and -0.2% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
State bank yuan buying reportedly accelerated the rally and encouraged exporters to convert FX, which could have contributed to the yuan gain, though the report is dated the day after the move.
