On April 9, 2025, China’s central bank, the People’s Bank of China (PBOC), instructed state-owned banks to reduce their purchases of U.S. dollars, according to a Reuters report. This directive is a strategic effort to stabilize the Chinese yuan (CNY), which has been under pressure due to global economic challenges, including trade tensions and U.S. tariffs on Chinese exports. The PBOC issued this guidance informally, asking banks to limit dollar buying for their own accounts and to closely monitor client dollar orders. By lowering demand for the U.S. dollar, the central bank aims to support the yuan’s value without resorting to drastic measures like devaluation, which could rattle markets. This move reflects a careful balancing act: supporting China’s export sector while avoiding financial instability and capital outflows. This action highlights China’s focus on currency management in a volatile global environment, signaling a proactive stance to protect its economy.