# China sees fierce pre-holiday liquidity scramble, money rates surge but yuan dips | Reuters

> Chinese short-term funding costs jumped to their highest in nearly 10 years ahead of the Lunar New Year holiday due to fears of tightening liquidity. The surge forced traders with short yuan positions to exit. The yuan dipped in early trade before strengthening that week.

- Date: 2017-01-19 · published 2017-01-19T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/11874-china-sees-fierce-pre-holiday-liquidity-scramble-money-rates-surge-but-yuan
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Tighter onshore liquidity and forced short covering shift near-term yuan exchange rates, which affects the cost of dollar-priced feed imports for China.

## Read by commodity

- USDCNY: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2024-01-22 | [China’s yuan holds steady on unchanged lending rates; offshore yuan liquidity tight - Markets - Business Recorder](https://feedsoft.ai/events/32359-china-s-yuan-holds-steady-on-unchanged-lending-rates-offshore-yuan-liquidity.md) | -0.2% | -0.0% |
| USDCNY | 2025-04-29 | [China ramps up global yuan push, seizing on retreating dollar \| Reuters](https://feedsoft.ai/events/25348-china-ramps-up-global-yuan-push-seizing-on-retreating-dollar-reuters.md) | -0.3% | -1.4% |
| USDCNY | 2022-02-16 | [China-U.S. monetary policy divergence aids yuan stability - ex-regulator](https://feedsoft.ai/events/42926-china-u-s-monetary-policy-divergence-aids-yuan-stability-ex-regulator.md) | -0.4% | +0.2% |
| USDCNY | 2026-03-05 | [Yuan bounces off one-month low on firmer guidance, Beijing reveals 2026 targets \| Reuters](https://feedsoft.ai/events/20389-yuan-bounces-off-one-month-low-on-firmer-guidance-beijing-reveals-2026-targets.md) | -0.5% | -0.4% |
| USDCNY | 2023-02-16 | [China's yuan rises but strong U.S. retail sales data caps upside - Financial Post](https://feedsoft.ai/events/37552-china-s-yuan-rises-but-strong-u-s-retail-sales-data-caps-upside-financial-post.md) | +0.8% | +0.7% |

## Sources

- reuters.com: https://www.reuters.com/article/markets/china-sees-fierce-pre-holiday-liquidity-scramble-money-rates-surge-but-yuan-dip-idUSL4N1F91LL/

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