# Cheap yuan catapults China to second-biggest trade funding currency | Reuters

> Global companies are issuing record amounts of yuan-denominated bonds and borrowing heavily from mainland banks to take advantage of low yuan interest rates. The yuan has become the second-biggest trade funding currency.

- Date: 2023-11-17 · published 2023-11-17T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/12031-cheap-yuan-catapults-china-to-second-biggest-trade-funding-currency-reuters
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Cheap yuan funding supports trade finance flows but has little direct effect on feed commodity supply or demand, so the impact on prices is minimal.

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2018-11-14 | [US-China trade war: Tariffs spur record dollar-yuan currency trading](https://feedsoft.ai/events/62265-us-china-trade-war-tariffs-spur-record-dollar-yuan-currency-trading.md) | -0.1% | -1.1% |
| USDCNY | 2018-04-17 | [China currency moves hang in the balance in U.S. trade spat \| Reuters](https://feedsoft.ai/events/65710-china-currency-moves-hang-in-the-balance-in-u-s-trade-spat-reuters.md) | +0.6% | +1.0% |
| USDCNY | 2023-08-21 | [EXCLUSIVE: China state banks seen mopping up offshore yuan to stem currency weakness \| Reuters](https://feedsoft.ai/events/34803-exclusive-china-state-banks-seen-mopping-up-offshore-yuan-to-stem-currency.md) | +0.1% | +0.2% |
| USDCNY | 2018-10-29 | [China's yuan finishes onshore trading at weakest since 2008 By Reuters](https://feedsoft.ai/events/62763-china-s-yuan-finishes-onshore-trading-at-weakest-since-2008-by-reuters.md) | -0.8% | +0.1% |
| USDCNY | 2021-02-22 | [China’s Yield Appeal Catapults Yuan to Global FX Big League](https://feedsoft.ai/events/48872-china-s-yield-appeal-catapults-yuan-to-global-fx-big-league.md) | +0.3% | +0.8% |

## Sources

- reuters.com: https://www.reuters.com/markets/currencies/cheap-yuan-catapults-china-second-biggest-trade-funding-currency-2023-11-17/

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