# Exclusive: China's state banks are buying yuan, quickening its rally

> 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.

- Date: 2023-11-21 · published 2023-11-21T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/12027-exclusive-china-s-state-banks-are-buying-yuan-quickening-its-rally
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

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.

## Read by commodity

- USDCNY: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDCNY | 2023-11-20 | 1 | -0.6% | -3.1 | 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. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2024-01-05 | [Exclusive: China's state banks act to stem yuan slide onshore and offshore -sources](https://feedsoft.ai/events/32357-exclusive-china-s-state-banks-act-to-stem-yuan-slide-onshore-and-offshore.md) | +0.1% | +0.5% |
| USDCNY | 2022-10-17 | [EXCLUSIVE: Exclusive: China's state banks seen acquiring dollars in swaps market to stabilise yuan \| Reuters](https://feedsoft.ai/events/39358-exclusive-exclusive-china-s-state-banks-seen-acquiring-dollars-in-swaps-market.md) | +0.7% | -1.6% |
| USDCNY | 2023-07-20 | [Exclusive: China's state banks selling dollars offshore to slow yuan declines, sources say](https://feedsoft.ai/events/35258-exclusive-china-s-state-banks-selling-dollars-offshore-to-slow-yuan-declines.md) | -1.0% | +1.0% |
| USDCNY | 2023-08-21 | [EXCLUSIVE: China state banks seen mopping up offshore yuan to stem currency weakness \| Reuters](https://feedsoft.ai/events/34803-exclusive-china-state-banks-seen-mopping-up-offshore-yuan-to-stem-currency.md) | +0.1% | +0.2% |
| USDCNY | 2024-08-30 | [China state banks buying dollars amid rapid yuan gains, sources say \| Reuters](https://feedsoft.ai/events/29021-china-state-banks-buying-dollars-amid-rapid-yuan-gains-sources-say-reuters.md) | -0.1% | -1.2% |

## Sources

- reuters.com: https://www.reuters.com/markets/currencies/chinas-state-banks-seen-swapping-selling-dollars-yuan-sources-2023-11-21/

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