# China state banks buying dollars amid rapid yuan gains, sources say | Reuters

> Major Chinese state-owned banks were reportedly buying dollars onshore on Friday to slow the yuan's rise. The yuan had strengthened to an eight-month high of 7.0895 per dollar, breaking chart resistance at 7.1.

- Date: 2024-08-30 · published 2024-08-30T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/29021-china-state-banks-buying-dollars-amid-rapid-yuan-gains-sources-say-reuters
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

A stronger yuan lowers the cost of Chinese imports and can shift feed buying and crush margins, but state intervention to cap gains signals policy limits on currency moves affecting Chinese demand for US and Brazilian feed commodities.

## Read by commodity

- USDCNY: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2023-07-25 | [China state banks seen selling US dollars to prop up yuan -sources](https://feedsoft.ai/events/35257-china-state-banks-seen-selling-us-dollars-to-prop-up-yuan-sources.md) | -0.6% | +1.4% |
| USDCNY | 2023-12-06 | [China state banks selling dollars for second day to support yuan - sources](https://feedsoft.ai/events/32921-china-state-banks-selling-dollars-for-second-day-to-support-yuan-sources.md) | +0.4% | +0.2% |
| 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 | 2022-08-24 | [EXCLUSIVE China regulator warns banks against yuan selling - sources \| Reuters](https://feedsoft.ai/events/40257-exclusive-china-regulator-warns-banks-against-yuan-selling-sources-reuters.md) | +0.9% | +2.9% |
| 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% |

## Sources

- reuters.com: https://www.reuters.com/markets/currencies/china-state-banks-buying-dollars-amid-rapid-yuan-gains-sources-say-2024-08-30/

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