The People's Bank of China (PBOC) set the USD/CNY fixing rate at 7.2092 on April 10, 2025, signaling a controlled weakening of the yuan, as it allows the currency to gradually lose value against the dollar while maintaining stability through daily fixes.
Arthur Hayes interprets this as a sign of potential economic turbulence ("shit ‘bout to get spicy"), suggesting that a weaker yuan could lead to increased money printing by China, which historically boosts Bitcoin's value as a hedge against currency devaluation.
Historically, the PBOC has intervened to manage yuan volatility, as seen in 2022 when it reduced foreign currency reserve requirements to slow yuan weakening , contrasting with Hayes' view of a deliberate, gradual devaluation strategy in 2025.