# China Hitches Yuan to the Dollar, Buying Rare Calm

> China has tightened the yuan's link to the dollar, producing a period of unusual currency calm. Analysts warn that pressure to weaken the yuan could build up and later cause sharp devaluation.

- Date: 2017-05-25 · published 2017-05-25T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/10566-china-hitches-yuan-to-the-dollar-buying-rare-calm
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

A managed yuan reduces near-term currency swings that affect the cost of Chinese purchases of imported feed. A future sharp devaluation would be a risk to import demand and prices.

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2019-05-31 | [What happens if the Chinese yuan breaches the 7 to the US dollar](https://feedsoft.ai/events/59276-what-happens-if-the-chinese-yuan-breaches-the-7-to-the-us-dollar.md) | +0.1% | -0.4% |
| USDCNY | 2017-01-05 | [China's Offshore Yuan is Bossing the US Dollar Around Today](https://feedsoft.ai/events/10253-china-s-offshore-yuan-is-bossing-the-us-dollar-around-today.md) | +0.1% | -1.0% |
| USDCNY | 2017-09-21 | [China's yuan inches up as post-Fed US dollar rally fades - The Business Times](https://feedsoft.ai/events/69189-china-s-yuan-inches-up-as-post-fed-us-dollar-rally-fades-the-business-times.md) | +1.1% | +0.6% |
| USDCNY | 2022-09-29 | [CNY/USD: Why China’s Yuan Hit Record Lows Against the Dollar - Bloomberg](https://feedsoft.ai/events/7207-cny-usd-why-china-s-yuan-hit-record-lows-against-the-dollar-bloomberg.md) | -1.2% | +0.3% |
| USDCNY | 2024-08-30 | [China state banks buying dollars amid rapid yuan gains, sources say \| Reuters](https://feedsoft.ai/events/29021-china-state-banks-buying-dollars-amid-rapid-yuan-gains-sources-say-reuters.md) | -0.1% | -1.2% |

## Sources

- wsj.com: https://www.wsj.com/articles/china-hitches-yuan-to-the-dollar-buying-rare-calm-1495704606?mod=e2twa

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