"China's PBOC Maneuvers to Stabilize Yuan Stir Market and Corporate Concerns"

China has successfully prevented a run on the yuan through coordinated market guidance and state bank buying, diverging from its heavy-handed intervention in 2015. This approach has included signaling acceptable levels of currency selling, targeted buying at key psychological levels, and verbal directives to banks to manage dollar holdings. While this has stabilized the yuan, it has also significantly reduced trading volumes and raised concerns about the currency's global reserve status. Despite the pressure, the yuan has remained above September's 16-year low, with market participants cautiously navigating the PBOC's influence.