# Macroscope | China still fighting an uphill battle to stabilise renminbi | South China Morning Post

> An Amundi strategist argues that China faces a difficult task stabilising the renminbi after offshore volatility surged at the start of 2017. A liquidity drought lifted the HIBOR overnight rate to 61 percent, forcing short CNH positions to unwind. Authorities have built a firewall against further volatility.

- Date: 2017-01-18 · published 2017-01-18T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/11876-macroscope-china-still-fighting-an-uphill-battle-to-stabilise-renminbi-south
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Persistent renminbi pressure and capital outflows keep China's currency risk elevated, which can affect the economics of dollar-priced feed imports.

## Read by commodity

- USDCNY: neutral

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDCNY | 2017-01-17 | 5 | -1.2% | -3.1 | HIBOR overnight rates spiking to 61% forced unwinding of short CNH positions, supporting the yuan. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2017-10-10 | [Chinese firms rush to hedge as yuan swings begin to sting \| South China Morning Post](https://feedsoft.ai/events/6416-chinese-firms-rush-to-hedge-as-yuan-swings-begin-to-sting-south-china-morning.md) | -1.0% | -0.3% |
| USDCNY | 2024-10-07 | [US election, jobs data to pressure China’s yuan as stimulus shores it up: analysts \| South China Morning Post](https://feedsoft.ai/events/11041-us-election-jobs-data-to-pressure-china-s-yuan-as-stimulus-shores-it-up.md) | +0.7% | +1.2% |
| USDCNY | 2017-05-29 | [China’s mysterious new yuan formula ‘no big quick fix for market volatility’ \| South China Morning Post](https://feedsoft.ai/events/71234-china-s-mysterious-new-yuan-formula-no-big-quick-fix-for-market-volatility.md) | -0.7% | -0.2% |
| USDCNY | 2018-01-18 | [China says yuan gains market-driven, two-way swings will be the norm \| South China Morning Post](https://feedsoft.ai/events/67199-china-says-yuan-gains-market-driven-two-way-swings-will-be-the-norm-south-china.md) | -1.1% | -1.4% |
| USDCNY | 2018-04-12 | [Analysis  \| Why devaluing the yuan is a no-no for China amid US trade war fears \| South China Morning Post](https://feedsoft.ai/events/65713-analysis-why-devaluing-the-yuan-is-a-no-no-for-china-amid-us-trade-war-fears.md) | +0.1% | +1.5% |

## Sources

- scmp.com: https://www.scmp.com/business/money/markets-investing/article/2063139/china-still-fighting-uphill-battle-stabilise

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