# China state banks buy dollars to curb rapid yuan rally -sources

> Four sources said China's major state-owned banks were buying dollars around 6.4 yuan per dollar to slow the yuan's rapid rise. The onshore yuan had hit its strongest level since June 2018 earlier that day. Broad dollar weakness after soft US data and steady Federal Reserve signals had supported the currency.

- Date: 2021-05-25 · published 2021-05-25T12:00:00.000Z
- Category: policy · region China · magnitude medium
- Page: https://feedsoft.ai/events/47320-china-state-banks-buy-dollars-to-curb-rapid-yuan-rally-sources
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

State bank dollar buying is a direct intervention that may slow yuan appreciation and limit the boost to Chinese dollar-priced commodity imports. It signals official resistance to a stronger yuan.

## Read by commodity

- USDCNY: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2025-12-04 | [EXCLUSIVE: China state-owned banks soak up dollars to slow yuan gains, sources say \| Reuters](https://feedsoft.ai/events/21739-exclusive-china-state-owned-banks-soak-up-dollars-to-slow-yuan-gains-sources.md) | +0.0% | -1.1% |
| USDCNY | 2017-01-01 | [China tweaks yuan basket to play down US dollar \| South China Morning Post](https://feedsoft.ai/events/73191-china-tweaks-yuan-basket-to-play-down-us-dollar-south-china-morning-post.md) | -0.1% | -1.0% |
| USDCNY | 2019-10-11 | [U.S.-China currency deal won't change dollar-yuan dynamics  experts](https://feedsoft.ai/events/56819-u-s-china-currency-deal-won-t-change-dollar-yuan-dynamics-experts.md) | -0.5% | -1.7% |
| USDCNY | 2017-01-03 | [China's yuan may see more volatility vs dollar after basket change \| Reuters](https://feedsoft.ai/events/10252-china-s-yuan-may-see-more-volatility-vs-dollar-after-basket-change-reuters.md) | -0.1% | -1.0% |
| USDCNY | 2017-05-27 | [China Tweaks Yuan’s Fix to Keep Currency Stable - Caixin Global](https://feedsoft.ai/events/5661-china-tweaks-yuan-s-fix-to-keep-currency-stable-caixin-global.md) | -0.7% | -0.2% |

## Sources

- reuters.com: https://www.reuters.com/article/china-yuan/update-1-china-state-banks-buy-dollars-to-curb-rapid-yuan-rally-sources-idUSL2N2NC0G8/

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