# Govt unveils measures to bolster economic recovery

> 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.

- Date: 2022-09-06 · published 2022-09-06T12:00:00.000Z
- Category: policy · region China · magnitude medium
- Page: https://feedsoft.ai/events/12270-govt-unveils-measures-to-bolster-economic-recovery
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

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.

## Read by commodity

- USDCNY: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDCNY | 2022-09-06 | 1 | +0.8% | 3.0 | 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. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2023-01-06 | [China's cascade of economic support measures spurs yuan buying - The Business Times](https://feedsoft.ai/events/12764-china-s-cascade-of-economic-support-measures-spurs-yuan-buying-the-business.md) | -2.1% | -1.6% |
| USDCNY | 2018-08-25 | [China Reintroduces Measure to Help Defend Yuan Exchange Rate - Caixin Global](https://feedsoft.ai/events/10039-china-reintroduces-measure-to-help-defend-yuan-exchange-rate-caixin-global.md) | +0.4% | +0.8% |
| USDCNY | 2018-08-21 | ['I'm not thrilled': Trump blasts Fed for raising interest rates, not doing enough to help him boost economy \| Financial Post](https://feedsoft.ai/events/63699-i-m-not-thrilled-trump-blasts-fed-for-raising-interest-rates-not-doing-enough.md) | -0.6% | +0.1% |
| USDCNY | 2017-06-01 | [New fixing mechanism limits renminbi depreciation against the U.S. dollar - Swiss Economicblogs.org](https://feedsoft.ai/events/8836-new-fixing-mechanism-limits-renminbi-depreciation-against-the-u-s-dollar-swiss.md) | -0.2% | -0.2% |
| USDCNY | 2022-04-27 | [China economy: Central bank tries to slow weakening yuan vs US dollar](https://feedsoft.ai/events/4947-china-economy-central-bank-tries-to-slow-weakening-yuan-vs-us-dollar.md) | +0.8% | +1.5% |

## Sources

- english.www.gov.cn: https://english.www.gov.cn/policies/policywatch/202209/06/content_WS631689cdc6d0a757729dfa4c.html

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