CHINA TO BANKS: STOP BUYING U.S. DOLLARS
In a drastic move to stabilize its currency, China’s central bank has ordered major state-owned banks to halt purchases of U.S. dollars and instead ramp up yuan buying to slow the currency’s decline.
This emergency intervention follows the implementation of Trump’s 104% tariffs on Chinese imports, which are severely denting China’s export earnings and threatening broader economic stability.
Authorities are also tightening regulations on dollar transactions to prevent traders and businesses from hedging against the yuan—hoping to stave off capital flight and domestic inflation.
This signals Beijing’s growing concern that a spiraling yuan could trigger market panic, elevate import prices, and ignite social unrest amid rising economic pressure.
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