Boma Achenimie 
In a strategic move to stabilise its national currency, the Central Bank of the People’s Republic of China has issued fresh directives aimed at curbing the decline of the Yuan.
New Telegraph gathered that the development followed the mounting pressure on its currency due to intensified United States tariffs on Chinese exports.
The People’s Bank of China (PBoC) has instructed major state-owned banks to scale back their US dollar purchases and tighten scrutiny on foreign exchange transactions.
The apex bank’s guidance, issued earlier this week, directed banks to avoid purchasing dollars for their proprietary accounts.
Additionally, the central bank urged the financial institutions to conduct more stringent checks on client orders involving dollar purchases.
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This move is widely interpreted by market analysts as an attempt to limit speculative trading and manage the downward trajectory of the yuan.
The Chinese currency has recently been under significant strain, prompting state-run banks to intervene in the onshore spot market by offloading US dollars and buying yuan.
These efforts are part of broader measures to slow the currency’s depreciation without resorting to a formal devaluation.
Despite the economic headwinds brought on by aggressive U.S. trade policies, the central bank has made it clear that it will not pursue a yuan devaluation strategy to buffer the impact on Chinese exports or the broader economy.
Global markets continue to monitor the situation closely, as China’s monetary policy adjustments could have ripple effects across emerging economies, including Nigeria, where forex volatility and trade dynamics remain highly sensitive to global currency fluctuations.
