# China state banks seen selling US dollars to prop up yuan -sources

> China's major state-owned banks were reportedly seen selling US dollars to buy yuan in onshore and offshore spot markets in early Asian trade, according to three sources. The yuan strengthened over 0.6% to a high of 7.1411 per dollar but remains down about 3.5% year-to-date.

- Date: 2023-07-25 · published 2023-07-25T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/35257-china-state-banks-seen-selling-us-dollars-to-prop-up-yuan-sources
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

State bank intervention to support the yuan signals Beijing's effort to limit depreciation, which can ease pressure on import costs for Chinese feed buyers and moderately affect dollar-denominated soybean and corn demand.

## Read by commodity

- USDCNY: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| 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 | 2024-08-30 | [China state banks buying dollars amid rapid yuan gains, sources say \| Reuters](https://feedsoft.ai/events/29021-china-state-banks-buying-dollars-amid-rapid-yuan-gains-sources-say-reuters.md) | -0.1% | -1.2% |
| USDCNY | 2022-08-31 | [China state-owned banks reportedly seen selling dollars in onshore market](https://feedsoft.ai/events/40259-china-state-owned-banks-reportedly-seen-selling-dollars-in-onshore-market.md) | +0.8% | +4.2% |
| 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-seen-selling-us-dollars-prop-up-yuan-sources-2023-07-25/

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