# China's central bank won't let yuan weaken past 7 to the dollar-sources

> China's central bank will use FX intervention and monetary tools to keep the yuan from weakening past 7 per dollar in the near term, according to three people familiar with its thinking. Sharp yuan falls are unwelcome because they could fuel capital flight. The yuan had weakened about 3% in the prior month after fading hopes for a trade deal.

- Date: 2019-05-17 · published 2019-05-17T12:00:00.000Z
- Category: policy · region China · magnitude medium
- Page: https://feedsoft.ai/events/59283-china-s-central-bank-won-t-let-yuan-weaken-past-7-to-the-dollar-sources
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Official defense of the 7 level limits downside in the yuan, which caps the tariff offset for Chinese importers and supports stable purchasing costs for US feed commodities.

## Read by commodity

- USDCNY: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2022-04-27 | [China economy: Central bank tries to slow weakening yuan vs US dollar](https://feedsoft.ai/events/4947-china-economy-central-bank-tries-to-slow-weakening-yuan-vs-us-dollar.md) | +0.8% | +1.5% |
| USDCNY | 2022-09-06 | [Why China's central bank is shoring up the yuan](https://feedsoft.ai/events/12268-why-china-s-central-bank-is-shoring-up-the-yuan.md) | +0.4% | +3.1% |
| USDCNY | 2025-02-21 | [China’s central bank vows to enhance yuan amid looming risks from strong US dollar \| South China Morning Post](https://feedsoft.ai/events/26298-china-s-central-bank-vows-to-enhance-yuan-amid-looming-risks-from-strong-us.md) | +0.4% | -0.1% |
| USDCNY | 2024-12-19 | [China's central bank offers strongest yuan support since July after dollar gains](https://feedsoft.ai/events/27167-china-s-central-bank-offers-strongest-yuan-support-since-july-after-dollar-gains.md) | +0.2% | +0.5% |
| USDCNY | 2022-10-26 | [Chinese state banks sold dollars to support yuan late on Tuesday - sources \| Reuters](https://feedsoft.ai/events/6937-chinese-state-banks-sold-dollars-to-support-yuan-late-on-tuesday-sources-reuters.md) | +0.1% | -1.5% |

## Sources

- finance.yahoo.com: https://finance.yahoo.com/news/chinas-central-bank-wont-let-082238337.html

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