# Exclusive: China's state banks told to stock up for yuan intervention

> China's central bank asked major state banks to be ready to sell dollars for yuan in offshore markets to stem the currency's decline. The yuan has lost more than 11% against the dollar this year and is heading for its biggest annual loss since 1994.

- Date: 2022-09-29 · published 2022-09-29T12:00:00.000Z
- Category: policy · region China · magnitude medium
- Page: https://feedsoft.ai/events/7209-exclusive-china-s-state-banks-told-to-stock-up-for-yuan-intervention
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Intervention could put a floor under the yuan, slightly easing pressure on Chinese import costs and dollar-priced commodity purchases, though the policy effect on grain demand is limited.

## Read by commodity

- USDCNY: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDCNY | 2022-09-29 | 1 | -1.1% | -4.4 | Reports that PBOC told state banks to prepare dollar sales for intervention signaled direct official action to support the yuan, a likely trigger for the sharp CNY per USD drop on Sept 29. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2016-12-03 | [China should use part of its foreign reserves to stabilize yuan expectations: central bank adviser](https://feedsoft.ai/events/73694-china-should-use-part-of-its-foreign-reserves-to-stabilize-yuan-expectations.md) | +0.3% | +1.1% |
| 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 | 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% |
| USDCNY | 2022-04-26 | [China cuts banks’ FX reserve ratio to support yuan - Business & Finance - Business Recorder](https://feedsoft.ai/events/7640-china-cuts-banks-fx-reserve-ratio-to-support-yuan-business-and-finance-business.md) | +0.8% | +1.4% |
| USDCNY | 2022-09-27 | [Exclusive: China prepares to tweak yuan fixing process to slow its fall -source](https://feedsoft.ai/events/7210-exclusive-china-prepares-to-tweak-yuan-fixing-process-to-slow-its-fall-source.md) | -0.4% | +1.8% |

## Sources

- reuters.com: https://www.reuters.com/markets/currencies/exclusive-chinas-state-banks-told-stock-up-yuan-intervention-sources-2022-09-29/

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