# China's banks are bursting with dollars, and that's a worry

> Foreign currency deposits in Chinese banks rose above $1 trillion for the first time in April, driven by strong export receipts and investment inflows. Banks are reportedly struggling to lend out the dollars, which traders see as a risk.

- Date: 2021-06-02 · published 2021-06-02T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/46813-china-s-banks-are-bursting-with-dollars-and-that-s-a-worry
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Large dollar liquidity and a strong export-driven currency affect China's import purchasing power and currency policy, but the report has no immediate effect on feed commodity prices.

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2017-03-09 | [China's yuan weakens, prompting dollar sales by state banks](https://feedsoft.ai/events/72221-china-s-yuan-weakens-prompting-dollar-sales-by-state-banks.md) | +0.0% | -0.3% |
| 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 | 2025-09-06 | [China’s yuan rallies with central bank backing as worries mount over US dollar \| South China Morning Post](https://feedsoft.ai/events/23115-china-s-yuan-rallies-with-central-bank-backing-as-worries-mount-over-us-dollar.md) | -0.1% | -0.2% |
| 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 | 2017-01-05 | [China's Offshore Yuan is Bossing the US Dollar Around Today](https://feedsoft.ai/events/10253-china-s-offshore-yuan-is-bossing-the-us-dollar-around-today.md) | +0.1% | -1.0% |

## Sources

- reuters.com: https://www.reuters.com/world/china/chinas-banks-are-bursting-with-dollars-thats-worry-2021-06-01/

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