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China announced a cut in the FX reserve requirement ratio from 8% to 6% effective Sept. 15 as part of a broader package to support economic recovery.
The renminbi had hit a two-year low of 6.94 per dollar on Sept. 5 before strengthening after the announcement.
The stimulus package and currency support could lift Chinese domestic demand for livestock and feed, though the price effect on feed commodities is limited in the near term.
english.www.gov.cn王晶晶Sep 6, 2022After 50 past bearish policy events, USDCNY moved a median -0.1% over 5 sessions (46% higher; middle half -0.4% to +0.4%), and -0.0% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
Reports the same RRR cut and that the yuan strengthened after hitting 6.94 on Sept. 5, so it explains the reversal in USD/CNY.
