# Exclusive: China's state banks act to stem yuan slide onshore and offshore -sources

> State banks swapped yuan for dollars onshore and sold dollars in the spot market from January 3 to 5 to support the currency, according to sources. The yuan had fallen to a three-week low near 7.1682 per dollar amid a resurgent US dollar and rate-cut expectations.

- Date: 2024-01-05 · published 2024-01-05T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/32357-exclusive-china-s-state-banks-act-to-stem-yuan-slide-onshore-and-offshore
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

State support for the yuan slows its depreciation, which slightly eases the dollar cost of Chinese imports, with limited direct effect on feed prices.

## Read by commodity

- USDCNY: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| 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 | 2023-11-21 | [Exclusive: China's state banks are buying yuan, quickening its rally](https://feedsoft.ai/events/12027-exclusive-china-s-state-banks-are-buying-yuan-quickening-its-rally.md) | -0.4% | -0.5% |
| 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 | 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% |

## Sources

- reuters.com: https://www.reuters.com/markets/currencies/chinas-state-banks-act-stem-yuan-slide-onshore-offshore-sources-2024-01-05/

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