# China’s yuan rebounds from 2-year low after PBOC cuts FX reserve ratio - Markets - Business Recorder

> The yuan rebounded on Sept. 6 from a more than two-year low after the PBOC cut the FX reserve requirement and set firmer-than-expected midpoint fixes. The onshore yuan had lost over 2% against the dollar in August amid dollar strength and a slowing economy.

- Date: 2022-09-06 · published 2022-09-06T12:00:00.000Z
- Category: policy · region China · magnitude low
- Page: https://feedsoft.ai/events/12271-china-s-yuan-rebounds-from-2-year-low-after-pboc-cuts-fx-reserve-ratio-markets
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Official efforts to slow yuan depreciation support Chinese import purchasing power, but analysts expect the currency to test 7 per dollar, which keeps dollar-priced feed imports relatively expensive.

## 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 | Directly describes the Sept. 6 yuan move: a rebound from the two-year low after the PBOC cut the FX reserve ratio and set firmer-than-expected fixes, which reversed the CNY per USD level. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2022-04-26 | [China cuts banks’ FX reserve ratio to support yuan - Business & Finance - Business Recorder](https://feedsoft.ai/events/7640-china-cuts-banks-fx-reserve-ratio-to-support-yuan-business-and-finance-business.md) | +0.8% | +1.4% |
| USDCNY | 2017-09-10 | [China's yuan slips, rally pauses after relaxation of FX outflow curbs - The Business Times](https://feedsoft.ai/events/9411-china-s-yuan-slips-rally-pauses-after-relaxation-of-fx-outflow-curbs-the.md) | +1.1% | +2.7% |
| USDCNY | 2022-09-05 | [China c.bank to cut FX reserve ratio to help limit yuan weakness](https://feedsoft.ai/events/12267-china-c-bank-to-cut-fx-reserve-ratio-to-help-limit-yuan-weakness.md) | +0.4% | +3.1% |
| USDCNY | 2022-09-26 | [China acts to rein in yuan slump, poised to raise FX risk reserve ratio By Reuters](https://feedsoft.ai/events/7212-china-acts-to-rein-in-yuan-slump-poised-to-raise-fx-risk-reserve-ratio-by.md) | -0.2% | +1.9% |
| USDCNY | 2022-08-25 | [Dollar Vs. Yuan: China Acts to Prop up Faltering Currency With Strong Fix - Markets Insider](https://feedsoft.ai/events/40264-dollar-vs-yuan-china-acts-to-prop-up-faltering-currency-with-strong-fix-markets.md) | +0.5% | +3.2% |

## Sources

- brecorder.com: https://www.brecorder.com/news/40195947

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