# China – the CNY and deflationary equilibrium

> An economic commentary notes that China's real effective exchange rate fell further in June and is down almost 20% from its 2022 peak, helped by inflation differentials rather than a weaker nominal dollar rate. The author argues that this real depreciation has boosted China's export competitiveness and delayed domestic stimulus.

- Date: 2025-08-04 · published 2025-08-04T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/10147-china-the-cny-and-deflationary-equilibrium
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

A cheaper real yuan supports Chinese export competitiveness and may delay stimulus that would lift domestic feed demand. The effect on grain and meal prices is indirect and limited.

## Read by commodity

- USDCNY: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2024-08-23 | [CNY at a glance: Is the worst of China’s depreciation pressure over? \| ING THINK](https://feedsoft.ai/events/29028-cny-at-a-glance-is-the-worst-of-china-s-depreciation-pressure-over-ing-think.md) | -0.7% | -1.3% |
| USDCNY | 2017-05-30 | [Inflation is the Key \| OANDA](https://feedsoft.ai/events/71216-inflation-is-the-key-oanda.md) | -0.7% | -0.2% |
| USDCNY | 2017-04-06 | [China’s Efforts to Boost the Yuan](https://feedsoft.ai/events/71719-china-s-efforts-to-boost-the-yuan.md) | -0.0% | +0.1% |
| USDCNY | 2019-01-31 | [CNY: Guided by the US-China trade talks - Westpac - Forex Crunch](https://feedsoft.ai/events/61312-cny-guided-by-the-us-china-trade-talks-westpac-forex-crunch.md) | +0.5% | -0.1% |
| USDCNY | 2023-12-27 | [How China Manages Its Currency—and Why That Matters](https://feedsoft.ai/events/32924-how-china-manages-its-currency-and-why-that-matters.md) | +0.1% | +0.4% |

## Sources

- eastasiaecon.com: https://www.eastasiaecon.com/cn-cny-aug-25/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.