# FX Daily: PBOC back in the (FX) game | articles | ING THINK

> The PBOC raised FX reserve requirements and set a weaker-than-expected yuan fixing at 6.3702, well above consensus. Both moves aim to curb yuan appreciation. ING expects the dollar to stay strong as the yuan is kept capped.

- Date: 2021-12-10 · published 2021-12-10T12:00:00.000Z
- Category: policy · region China · magnitude medium
- Page: https://feedsoft.ai/events/11299-fx-daily-pboc-back-in-the-fx-game-articles-ing-think
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Capping the yuan keeps Chinese import costs in dollar terms higher than they would otherwise be, which can weigh on feed purchase appetite. A firmer dollar also tends to pressure US dollar-priced commodities.

## Read by commodity

- DXY: bullish ▲
- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2024-04-12 | [Decoding China’s FX guessing game - Euromoney](https://feedsoft.ai/events/30958-decoding-china-s-fx-guessing-game-euromoney.md) | +0.0% | -0.2% |
| USDCNY | 2026-02-27 | [USD/CNY & USD/CNH jump as PBoC cuts FX RRR to zero, cooling yuan gains](https://feedsoft.ai/events/20790-usd-cny-and-usd-cnh-jump-as-pboc-cuts-fx-rrr-to-zero-cooling-yuan-gains.md) | +0.7% | +1.0% |
| USDCNY | 2021-12-15 | [China's c.bank records biggest net FX purchases in more than six years in Nov](https://feedsoft.ai/events/43817-china-s-c-bank-records-biggest-net-fx-purchases-in-more-than-six-years-in-nov.md) | +0.1% | -0.1% |
| USDCNY | 2020-10-28 | [Yuan’s Rally Faces Test After Banks Tweak Daily Reference Rate - Caixin Global](https://feedsoft.ai/events/50849-yuan-s-rally-faces-test-after-banks-tweak-daily-reference-rate-caixin-global.md) | -0.4% | -1.9% |
| USDCNY | 2020-10-28 | [Yuan eases after China tweaks fixing formula to rein in strength \| Financial Post](https://feedsoft.ai/events/50848-yuan-eases-after-china-tweaks-fixing-formula-to-rein-in-strength-financial-post.md) | -0.4% | -1.9% |
| DXY | 2018-02-07 | [U.S. Dollar Rises Following Budget Agreement - WSJ](https://feedsoft.ai/events/12001-u-s-dollar-rises-following-budget-agreement-wsj.md) | +0.2% | +0.7% |
| DXY | 2020-10-29 | [Brexit Progress Supports Pound Sterling against Euro and Dollar in a Stormy Market](https://feedsoft.ai/events/50877-brexit-progress-supports-pound-sterling-against-euro-and-dollar-in-a-stormy.md) | -0.5% | -2.2% |
| DXY | 2023-10-13 | [Economic Update: Dairy Forward Pricing Program has expired, for now \| Ag Proud](https://feedsoft.ai/events/33771-economic-update-dairy-forward-pricing-program-has-expired-for-now-ag-proud.md) | +0.5% | -0.9% |

## Sources

- think.ing.com: https://think.ing.com/articles/fx-daily-pboc-back-in-the-fx-game/

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