# China steps up scrutiny of capital flows as yuan depreciates

> China's yuan has lost 2.2% against the dollar since Trump's November election win, as tariff threats heighten Sino-US tensions and discourage inbound foreign investment. Authorities are also stepping up scrutiny of capital flows. The yield gap between US and Chinese rates hit its widest level ever in January.

- Date: 2025-02-27 · published 2025-02-27T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/26288-china-steps-up-scrutiny-of-capital-flows-as-yuan-depreciates
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

A weaker yuan raises the dollar cost of Chinese purchases of US farm goods, which can weigh on US export demand. The effect on feed commodity prices is indirect and modest.

## Read by commodity

- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2017-12-05 | [Experts urge tighter scrutiny of cross-border capital flows - Chinadaily.com.cn](https://feedsoft.ai/events/67716-experts-urge-tighter-scrutiny-of-cross-border-capital-flows-chinadaily-com-cn.md) | -0.0% | -1.8% |
| USDCNY | 2017-02-07 | [USD/CNY to rise as China’s capital outflows intensifies: Strategist](https://feedsoft.ai/events/72721-usd-cny-to-rise-as-china-s-capital-outflows-intensifies-strategist.md) | +0.3% | +0.6% |
| USDCNY | 2024-05-01 | [Yuan falls out of favour with China’s exporters as fears of depreciation mount](https://feedsoft.ai/events/30957-yuan-falls-out-of-favour-with-china-s-exporters-as-fears-of-depreciation-mount.md) | -0.3% | +0.1% |
| USDCNY | 2022-05-05 | [US Fed rate hike: how can China stem capital outflow and prop up the yuan? \| South China Morning Post](https://feedsoft.ai/events/8315-us-fed-rate-hike-how-can-china-stem-capital-outflow-and-prop-up-the-yuan-south.md) | +1.7% | +0.8% |
| USDCNY | 2017-02-26 | [China's yuan falls, but fears of US trade war may cap depreciation - The Business Times](https://feedsoft.ai/events/72719-china-s-yuan-falls-but-fears-of-us-trade-war-may-cap-depreciation-the-business.md) | +0.5% | +0.2% |

## Sources

- reuters.com: https://www.reuters.com/markets/asia/china-steps-up-scrutiny-capital-flows-yuan-depreciates-2025-02-27/

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