How China Is Defending the Yuan Without Burning Reserves

The yuan has held steady at 6.78 per dollar for weeks even as the U.S. dollar index climbed to 120.5 and China's trade deficit widened to $77.6 billion in May. How is Beijing managing this stability without draining its foreign reserves? In this episode, Lucas and Luna examine the PBOC's toolkit: state bank interventions, tighter capital controls, and yuan swap lines with emerging economies. They also discuss why China is prioritizing currency stability over export competitiveness, contrasting with Japan's approach. With the current account deficit deepening and imports outpacing exports, the episode explores whether China's reserve defense is sustainable or if it masks deeper economic pressures. Tune in for a grounded look at one of the year's quietest yet most consequential currency stories. #China #Yuan #PBOC #Forex #CurrencyStability #TradeDeficit #DollarIndex #CapitalControls #SwapLines #AsiaMarkets #FXI #Economics #Macro #GlobalTrade #CentralBanking #FexingoBusiness #BusinessPodcast #ChinaEconomy Keep every episode free: buymeacoffee.com/fexingo