# How PBOC might respond to China's weakening yuan

> China's yuan has weakened amid portfolio outflows. The outflows are attributed to rising US interest rates, the war in Ukraine, and a slowing domestic economy hit by COVID-19 lockdowns in Chinese cities.

- Date: 2022-05-11 · published 2022-05-11T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/10987-how-pboc-might-respond-to-china-s-weakening-yuan
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

A weaker yuan raises the cost of imported feed ingredients priced in dollars for Chinese buyers and can dampen import demand. The effect on global feed prices is modest unless the currency move deepens.

## Read by commodity

- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2024-10-28 | [China's weakening yuan set to snap three straight months of gains in Oct](https://feedsoft.ai/events/28078-china-s-weakening-yuan-set-to-snap-three-straight-months-of-gains-in-oct.md) | +0.0% | +1.7% |
| USDCNY | 2020-02-03 | [China's yuan weakens but falling yen points to risk recovery](https://feedsoft.ai/events/5135-china-s-yuan-weakens-but-falling-yen-points-to-risk-recovery.md) | +1.2% | +0.6% |
| USDCNY | 2024-04-16 | [China's cycle of dollar hoarding and weakening yuan gets vicious](https://feedsoft.ai/events/30951-china-s-cycle-of-dollar-hoarding-and-weakening-yuan-gets-vicious.md) | +0.0% | -0.1% |
| USDCNY | 2021-06-17 | [China’s PBOC Braces for Weaker Yuan as Fed Plans Tapering - Bloomberg](https://feedsoft.ai/events/7116-china-s-pboc-braces-for-weaker-yuan-as-fed-plans-tapering-bloomberg.md) | +1.2% | +1.0% |
| USDCNY | 2023-03-31 | [Widening U.S.-China Rate Gap Set to Weigh on Yuan’s Resilience - Caixin Global](https://feedsoft.ai/events/37088-widening-u-s-china-rate-gap-set-to-weigh-on-yuan-s-resilience-caixin-global.md) | +0.1% | +0.8% |

## Sources

- reuters.com: https://www.reuters.com/world/china/how-pboc-might-respond-chinas-weakening-yuan-2022-05-11/

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