# Yuan to keep weakening despite forex RRR cut | snaps | ING THINK

> ING expects the yuan to keep weakening despite the PBOC's cut in the FX reserve requirement to 6% from 8%, with USD/CNY near 6.95. ING sees the weakness driven by a strong dollar and expected Federal Reserve hikes, and forecasts 7.05 by end-third quarter.

- Date: 2022-09-05 · published 2022-09-05T12:00:00.000Z
- Category: market · region China · magnitude low
- Page: https://feedsoft.ai/events/12273-yuan-to-keep-weakening-despite-forex-rrr-cut-snaps-ing-think
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md), [Soybeans](https://feedsoft.ai/c/SOY.md)

## Why it matters

A persistently weaker yuan makes dollar-priced feed imports costlier for China, which can weigh on Chinese demand for US soybeans and meal.

## Read by commodity

- SOY: bearish ▼
- USDCNY: bullish ▲

## Sources

- think.ing.com: https://think.ing.com/snaps/yuan-to-keep-weakening-despite-forex-rrr-cut/

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