China's central bank, the People's Bank of China (PBOC), is facing increasing pressure to allow the renminbi (yuan) to weaken amid ongoing economic challenges. The PBOC has been setting the yuan fix at slightly weaker levels, signaling a potential acceptance of further depreciation. Major state-owned banks in China have been seen swapping yuan for US dollars in the offshore foreign exchange market, further indicating potential measures to manage the currency's value. Deputy Governor of the PBOC has emphasized the need to make financial markets more transparent, rule-based, and predictable, while also increasing the liquidity of yuan financial assets. Additionally, the central bank has stated it will sell government bonds when necessary to manage market conditions.