◂ Event Timeline

May 1, 2025MACROChina

EXCLUSIVE: China's central bank asks state lenders to reduce dollar purchases, sources say

China's central bank reportedly asked state-owned lenders to reduce US dollar purchases, according to sources. The move comes as the yuan faces heavy downward pressure from US tariffs and Beijing's retaliation.

WHY IT MATTERS

Managing yuan weakness supports Chinese import costs for feed commodities, a factor for US export demand and dollar-denominated grain prices.

AFFECTSChinese Yuan (CNY per USD)▲

SOURCE
reuters.comReutersMay 1, 2025

Price reaction & history

Chinese Yuan (CNY per USD)▲bullishSO FAR1d 0.0%5d -0.6%20d -1.2%

After 398 past bullish macro events, Chinese Yuan (CNY per USD) moved a median +0.0% over 5 sessions (56% higher; middle half -0.3% to +0.5%), and +0.0% over 20.

Sep 14, 2023Exclusive: China asks big banks to stagger and adjust dollar purchases, sources say+0.2%
Jul 4, 2018Exclusive: China to be less interventionist on yuan than in 2015 - sources | Reuters+0.6%
Jul 25, 2024China central bank surprises by lending again at lower rates | Reuters-0.6%
Nov 18, 2016Exclusive - China ready to slow yuan descent, worried about capital outflows: sources+0.7%
May 23, 2024China Allows Yuan to Drop as Outflows, Dollar Test Central Bank’s Grip - Caixin Global+0.1%

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.

Chinese Yuan (CNY per USD) USDCNY · GP ▸

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