# China's yuan softens as central bank hints at preference for slower gains - Markets - Business Recorder

> China's yuan softened on Wednesday after a strong rally earlier in the week, as the central bank signaled a preference for slower appreciation. The PBOC raised a macro prudential coefficient for firms making overseas loans, which analysts called indirect currency intervention. The official midpoint was fixed at its firmest level since June 2018 but slightly weaker than expected.

- Date: 2021-01-06 · published 2021-01-06T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/12068-china-s-yuan-softens-as-central-bank-hints-at-preference-for-slower-gains
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

A stronger yuan and central bank resistance to rapid gains affect the currency backdrop for Chinese feed import demand and dollar-priced commodity purchases. The effect on grain prices is indirect and modest.

## Read by commodity

- USDCNY: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2024-09-30 | [China’s yuan poised for best quarter since 2020; state banks try to slow gains - Markets - Business Recorder](https://feedsoft.ai/events/28550-china-s-yuan-poised-for-best-quarter-since-2020-state-banks-try-to-slow-gains.md) | +0.1% | +1.6% |
| USDCNY | 2021-07-15 | [China's yuan inches higher, GDP data caps gains - Markets - Business Recorder](https://feedsoft.ai/events/46289-china-s-yuan-inches-higher-gdp-data-caps-gains-markets-business-recorder.md) | -0.0% | +0.1% |
| USDCNY | 2025-11-28 | [China’s yuan set for longest monthly win streak since 2021 - Markets - Business Recorder](https://feedsoft.ai/events/22171-china-s-yuan-set-for-longest-monthly-win-streak-since-2021-markets-business.md) | -0.1% | -1.0% |
| USDCNY | 2022-06-16 | [China’s yuan climbs to week high after expected Fed move - Markets - Business Recorder](https://feedsoft.ai/events/41169-china-s-yuan-climbs-to-week-high-after-expected-fed-move-markets-business.md) | -0.2% | +0.7% |
| USDCNY | 2024-10-10 | [China’s yuan inches higher as PBOC support offsets dollar strength - Markets - Business Recorder](https://feedsoft.ai/events/11040-china-s-yuan-inches-higher-as-pboc-support-offsets-dollar-strength-markets.md) | +0.6% | +0.8% |

## Sources

- brecorder.com: https://www.brecorder.com/news/40048191

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