China’s currency has had a rough start to 2025. It is nearing a 16-month low and many economists predict it has further to fall.

The bank halted its government bond purchases Friday in an attempt to slow a one-way bonds trade that’s put unwanted downward pressure on the yuan, analysts say.

China's central bank said on Friday it has suspended treasury bond purchases, triggering a jump in yields and spurring speculation that the move was aimed at defending a falling currency.

China’s central bank has hit pause on government bond purchases, a move that comes as long-term yields hit fresh lows amid expectations of more monetary policy easing. The People’s Bank of China cited excess demand for government bonds as the reason for its decision,

China's central bank is expected to deploy its most aggressive monetary tactics in a decade this year as it tries to stimulate the economy and soften the blow of impending U.S. tariff hikes, but in doing so it risks quickly exhausting its firepower.

China’s central bank increased its gold reserves for the second consecutive month in December, signaling a renewed interest in the precious metal after a six-month pause due to soaring prices. Data released on Tuesday showed that the People’s Bank of China’s gold holdings rose to 73.