# EXCLUSIVE: China state-owned banks soak up dollars to slow yuan gains, sources say | Reuters

> Sources say China's major state-owned banks bought dollars in the onshore market and held them to slow the yuan's rise to a 14-month high. The unusual intervention came as the yuan extended gains against the dollar.

- Date: 2025-12-04 · published 2025-12-04T12:00:00.000Z
- Category: policy · region China · magnitude low
- Page: https://feedsoft.ai/events/21739-exclusive-china-state-owned-banks-soak-up-dollars-to-slow-yuan-gains-sources
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

State bank intervention to cap yuan strength limits how much cheaper dollar-priced imports become for Chinese buyers. This tempers the currency's effect on demand for feed commodities.

## Read by commodity

- USDCNY: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2021-05-25 | [China state banks buy dollars to curb rapid yuan rally -sources](https://feedsoft.ai/events/47320-china-state-banks-buy-dollars-to-curb-rapid-yuan-rally-sources.md) | -0.6% | +1.0% |
| USDCNY | 2017-01-01 | [China tweaks yuan basket to play down US dollar \| South China Morning Post](https://feedsoft.ai/events/73191-china-tweaks-yuan-basket-to-play-down-us-dollar-south-china-morning-post.md) | -0.1% | -1.0% |
| 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 | 2026-01-01 | [China Signals Goal of Slow Yuan Gain Via Fix Well Below Estimate](https://feedsoft.ai/events/21740-china-signals-goal-of-slow-yuan-gain-via-fix-well-below-estimate.md) | -0.1% | -0.6% |
| 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% |

## Sources

- reuters.com: https://www.reuters.com/business/finance/china-state-owned-banks-soak-up-dollars-slow-yuan-gains-sources-say-2025-12-04/

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