# China Inc.’s Large Dollar Debts Fuel Beijing’s Efforts to Curb Yuan Plunge

> Chinese companies owe large amounts of foreign-currency debt, which is prompting Beijing to intervene to keep the yuan from falling too steeply against a strong dollar. The yuan had dropped 4% over three months as the dollar hit a 14-year high against 16 currencies.

- Date: 2017-01-03 · published 2017-01-03T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/10254-china-inc-s-large-dollar-debts-fuel-beijing-s-efforts-to-curb-yuan-plunge
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Heavy dollar debt service and capital-flight pressure constrain China's currency options, and state intervention to slow yuan depreciation can influence the cost of Chinese imports of feed ingredients.

## Read by commodity

- DXY: bullish ▲
- USDCNY: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| 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 | 2018-11-14 | [US-China trade war: Tariffs spur record dollar-yuan currency trading](https://feedsoft.ai/events/62265-us-china-trade-war-tariffs-spur-record-dollar-yuan-currency-trading.md) | -0.1% | -1.1% |
| USDCNY | 2018-12-24 | [China to keep yuan currency from sliding below 7 to the US dollar as part of trade war deal, analysts said \| South China Morning Post](https://feedsoft.ai/events/61790-china-to-keep-yuan-currency-from-sliding-below-7-to-the-us-dollar-as-part-of.md) | -0.7% | -2.3% |
| USDCNY | 2018-11-07 | [China's reserves fall, suggesting Beijing propping up yuan \| AP News](https://feedsoft.ai/events/62266-china-s-reserves-fall-suggesting-beijing-propping-up-yuan-ap-news.md) | +0.5% | -0.6% |
| USDCNY | 2023-05-31 | [Experts: Yuan set to remain largely stable - Chinadaily.com.cn](https://feedsoft.ai/events/36176-experts-yuan-set-to-remain-largely-stable-chinadaily-com-cn.md) | +0.6% | +2.3% |
| DXY | 2025-03-25 | [Yuan drops to two-week low despite PBOC's efforts as dollar firms](https://feedsoft.ai/events/25811-yuan-drops-to-two-week-low-despite-pboc-s-efforts-as-dollar-firms.md) | +0.4% | -3.1% |
| DXY | 2024-10-14 | [US dollar climbs to 10-week peak; euro, China's yuan fall](https://feedsoft.ai/events/11042-us-dollar-climbs-to-10-week-peak-euro-china-s-yuan-fall.md) | +1.2% | +3.1% |
| DXY | 2021-04-01 | [China's yuan dips as Biden infrastructure plan lifts dollar \| Financial Post](https://feedsoft.ai/events/47817-china-s-yuan-dips-as-biden-infrastructure-plan-lifts-dollar-financial-post.md) | -0.5% | -1.8% |

## Sources

- wsj.com: https://www.wsj.com/articles/china-inc-s-large-dollar-debts-fuel-beijings-efforts-to-curb-yuan-plunge-1483468681

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