# Exclusive: China's state banks selling dollars offshore to slow yuan declines, sources say

> China's major state-owned banks were seen selling dollars to buy yuan in the offshore spot market in early Asian trade, according to two sources. The same day, the central bank relaxed a cross-border financing rule, and the offshore yuan rose more than 0.7% to 7.1812 per dollar.

- Date: 2023-07-20 · published 2023-07-20T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/35258-exclusive-china-s-state-banks-selling-dollars-offshore-to-slow-yuan-declines
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Yuan support and easier overseas borrowing reduce depreciation pressure, which marginally lowers the cost of Chinese imports of feed ingredients priced in dollars.

## Read by commodity

- USDCNY: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2024-01-05 | [Exclusive: China's state banks act to stem yuan slide onshore and offshore -sources](https://feedsoft.ai/events/32357-exclusive-china-s-state-banks-act-to-stem-yuan-slide-onshore-and-offshore.md) | +0.1% | +0.5% |
| 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 | 2023-08-21 | [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 | 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% |

## Sources

- reuters.com: https://www.reuters.com/world/china/chinas-state-banks-seen-selling-dollars-offshore-slow-yuan-declines-sources-2023-07-20/

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