# China cannot let yuan weaken over 25 pct - ex-central bank advisor

> Former People's Bank of China Monetary Policy Committee member Yu Yongding said China will keep facing capital outflow and currency depreciation pressure in 2017. He was quoted by the Economic Information Daily, and his remarks suggest Beijing cannot let the yuan fall more than about 25 percent.

- Date: 2017-01-09 · published 2017-01-09T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/10765-china-cannot-let-yuan-weaken-over-25-pct-ex-central-bank-advisor
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Persistent capital outflows and a weaker yuan raise China's import costs in dollars and tighten the outlook for Chinese feed demand. A firm policy floor on the yuan limits how far the currency channel can pressure dollar-denominated commodity prices.

## Read by commodity

- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2019-06-09 | [China Central Banker Says No Specific Yuan Level Important - Bloomberg](https://feedsoft.ai/events/58817-china-central-banker-says-no-specific-yuan-level-important-bloomberg.md) | +0.3% | -0.4% |
| USDCNY | 2024-05-23 | [China Allows Yuan to Drop as Outflows, Dollar Test Central Bank’s Grip - Caixin Global](https://feedsoft.ai/events/30490-china-allows-yuan-to-drop-as-outflows-dollar-test-central-bank-s-grip-caixin.md) | +0.1% | +0.3% |
| USDCNY | 2016-11-16 | [China’s Yuan Tumbles to Eight-Year Low as Banks Weaken Forecasts - Bloomberg](https://feedsoft.ai/events/7741-china-s-yuan-tumbles-to-eight-year-low-as-banks-weaken-forecasts-bloomberg.md) | +0.5% | +0.7% |
| USDCNY | 2017-03-09 | [China's yuan weakens, prompting dollar sales by state banks](https://feedsoft.ai/events/72221-china-s-yuan-weakens-prompting-dollar-sales-by-state-banks.md) | +0.0% | -0.3% |
| USDCNY | 2024-07-09 | [China’s central bank is stuck in a policy dilemma](https://feedsoft.ai/events/12299-china-s-central-bank-is-stuck-in-a-policy-dilemma.md) | -0.1% | -1.9% |

## Sources

- reuters.com: https://www.reuters.com/article/china-yuan-depreciation-idUSL4N1EZ19D/?feedName=usDollarRpt&feedType=RSS

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