# EXCLUSIVE: Exclusive: China's state banks seen acquiring dollars in swaps market to stabilise yuan | Reuters

> Six banking sources told Reuters that China's major state-owned banks sold a high volume of US dollars on October 17, using swaps and spot trades to defend the weakening yuan. The banks used a playbook previously seen in 2018 and 2019.

- Date: 2022-10-17 · published 2022-10-17T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/39358-exclusive-exclusive-china-s-state-banks-seen-acquiring-dollars-in-swaps-market
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

State dollar sales slow yuan depreciation, which limits the rise in the cost of dollar-priced imports for Chinese feed buyers. The intervention is a currency measure with a modest direct effect on feed markets.

## Read by commodity

- USDCNY: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| 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 | 2023-07-20 | [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 | 2022-08-31 | [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 | 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 | 2023-05-26 | [China’s yuan rebounds after state banks sell dollars to lend support - Markets - Business Recorder](https://feedsoft.ai/events/36177-china-s-yuan-rebounds-after-state-banks-sell-dollars-to-lend-support-markets.md) | +0.1% | +2.2% |

## Sources

- reuters.com: https://www.reuters.com/business/energy/exclusive-chinas-state-banks-seen-acquiring-dollars-swaps-market-stabilise-yuan-2022-10-17/

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