◂ Event Timeline

Dec 19, 2024POLICYChina

China's central bank offers strongest yuan support since July after dollar gains

The People's Bank of China set the yuan fixing at its strongest bias since July, stepping up support after the dollar rallied on Federal Reserve caution over rate cuts. The offshore yuan rose 0.2% and hit a one-year low earlier in the week.

WHY IT MATTERS

Stronger official support slows yuan depreciation, which can help keep Chinese import buying of US farm goods more stable, though authorities still signal tolerance for a weaker currency amid tariff risks.

AFFECTSChinese Yuan (CNY per USD)▼

SOURCE
moneycontrol.comBloombergDec 19, 2024

Price reaction & history

Chinese Yuan (CNY per USD)▼bearishSO FAR1d +0.1%5d +0.2%20d +0.5%

After 50 past bearish policy events, Chinese Yuan (CNY per USD) moved a median -0.1% over 5 sessions (46% higher; middle half -0.4% to +0.4%), and -0.0% over 20.

Feb 21, 2025China’s central bank vows to enhance yuan amid looming risks from strong US dollar | South China Morning Post+0.4%
May 17, 2019China's central bank won't let yuan weaken past 7 to the dollar-sources+0.4%
Apr 27, 2022China economy: Central bank tries to slow weakening yuan vs US dollar+0.8%
Oct 26, 2022Chinese state banks sold dollars to support yuan late on Tuesday - sources | Reuters+0.1%
Jul 6, 2023China's yuan firms as central bank pledges again to stabilize currency-1.1%

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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