◂ Event Timeline

Jan 3, 2017POLICYChina

China's yuan may see more volatility vs dollar after basket change

China's new basket for the yuan index includes emerging market currencies, which analysts at OCBC say will offset some of the impact of dollar strength on the index. The change may make the yuan index more volatile against the dollar.

WHY IT MATTERS

Changes to the currency basket alter how the yuan trades against the dollar and can influence the currency cost of Chinese feed imports.

AFFECTSChinese Yuan (CNY per USD)◆

SOURCE
reuters.comJan 3, 2017

Price reaction & history

Chinese Yuan (CNY per USD)◆neutralSO FAR1d +0.2%5d -0.1%20d -1.0%

After 42 past neutral policy events, Chinese Yuan (CNY per USD) moved a median -0.0% over 5 sessions (50% higher; middle half -0.3% to +0.4%), and -0.2% over 20.

Jan 1, 2017China tweaks yuan basket to play down US dollar | South China Morning Post-0.1%
Oct 23, 2020Prepare for more volatility in the Chinese yuan, regulator says+0.5%
Oct 20, 2019China’s yuan exchange rate ‘appropriate’ after recent weakening, central bank chief says | South China Morning Post-0.2%
Dec 31, 2024China to lower dollar, euro and yen weightings in CFETS yuan basket in 2025+0.4%
Oct 11, 2019U.S.-China currency deal won't change dollar-yuan dynamics experts-0.5%

Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.

Chinese Yuan (CNY per USD) USDCNY · GP ▸

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