# Policy measures China's central bank could use to stem yuan weakness

> China's central bank set stronger-than-expected yuan midpoint fixings this week, and state banks were seen selling dollars onshore and offshore. The yuan has lost nearly 5% against the dollar this year and is among the weakest Asian currencies. Markets expect the PBOC may add policy measures if the slide continues.

- Date: 2023-06-29 · published 2023-06-29T12:00:00.000Z
- Category: macro · region China · magnitude medium
- Page: https://feedsoft.ai/events/35711-policy-measures-china-s-central-bank-could-use-to-stem-yuan-weakness
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

A weaker yuan raises the cost of imports for China, a major buyer of feed grains and oilseeds, which can slow purchases and pressure prices. Intervention to defend the currency signals policymakers' concern about this pressure.

## Read by commodity

- USDCNY: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2018-03-27 | [China’s Central Bank Sends Yuan Surging](https://feedsoft.ai/events/66212-china-s-central-bank-sends-yuan-surging.md) | +0.2% | +0.8% |
| USDCNY | 2024-09-24 | [China's yuan surges to 16-month peak on new stimulus measures](https://feedsoft.ai/events/28554-china-s-yuan-surges-to-16-month-peak-on-new-stimulus-measures.md) | -0.5% | +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 | 2025-01-10 | [China's central bank halts bond buying as yuan struggles](https://feedsoft.ai/events/26717-china-s-central-bank-halts-bond-buying-as-yuan-struggles.md) | -0.0% | -0.5% |
| USDCNY | 2023-08-24 | [China central bank boosts offshore bill sales to stabilise yuan, says ex-official](https://feedsoft.ai/events/34802-china-central-bank-boosts-offshore-bill-sales-to-stabilise-yuan-says-ex-official.md) | +0.1% | +0.4% |

## Sources

- reuters.com: https://www.reuters.com/markets/currencies/policy-measures-chinas-central-bank-could-use-stem-yuan-weakness-2023-06-29/?taid=649d80a1f25e2d0001badf21

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