China’s central bank has surveyed financial institutions for their views on the recent weakness in the U.S. dollar and its implications for the yuan, according to sources familiar with the matter.
The People’s Bank of China (PBOC) conducted the survey last week, asking about the causes of the dollar’s decline and expectations for the yuan’s exchange rate. While the PBOC didn’t disclose the reason for the inquiry, one source interpreted it as a sign that authorities may be concerned about the yuan rising too sharply against a weakening dollar.
Another source linked the timing of the survey to ongoing U.S.-China trade discussions, suggesting it may help gauge the dollar’s outlook as key tariff deadlines approach.
Reuters had the report.
The background to this is:
- The US dollar has struggled in 2025, posting its worst first-half performance since 1973, down 11% year-to-date and 6.6% since early April.
- By contrast, the yuan has remained relatively stable, rising just 1.3% since Trump’s tariff announcement in April.
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