# China Draws a Red Line for the Yuan as Trump Risks Return - Bloomberg

> The People's Bank of China has kept its daily reference rate stronger than 7.2 per dollar since the US election to resist yuan weakness. The central bank set the fixing at a one-week high on Tuesday, pushing back against a selloff after Trump promised new tariffs on social media. Analysts had expected Beijing to give way.

- Date: 2024-11-26 · published 2024-11-26T12:00:00.000Z
- Category: policy · region China · magnitude low
- Page: https://feedsoft.ai/events/27629-china-draws-a-red-line-for-the-yuan-as-trump-risks-return-bloomberg
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Beijing's defence of the yuan limits near-term currency pressure on Chinese import costs, which supports steady demand for US feed grains. The tariff threat itself remains the larger risk to trade flows and prices.

## Read by commodity

- USDCNY: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2023-12-30 | [How China talked markets out of a run on the yuan By Reuters](https://feedsoft.ai/events/11839-how-china-talked-markets-out-of-a-run-on-the-yuan-by-reuters.md) | +0.8% | +1.1% |
| USDCNY | 2017-06-26 | [China's yuan tweaks reflect Fed fears - Nikkei Asia](https://feedsoft.ai/events/11182-china-s-yuan-tweaks-reflect-fed-fears-nikkei-asia.md) | -0.8% | -1.3% |
| USDCNY | 2020-10-23 | [Prepare for more volatility in the Chinese yuan, regulator says](https://feedsoft.ai/events/50853-prepare-for-more-volatility-in-the-chinese-yuan-regulator-says.md) | +0.5% | -1.8% |
| USDCNY | 2024-05-01 | [China Ramps Up Yuan Support as Fixing Tops Estimates by Record](https://feedsoft.ai/events/30955-china-ramps-up-yuan-support-as-fixing-tops-estimates-by-record.md) | -0.3% | +0.1% |
| USDCNY | 2025-01-20 | [China holds lending rates steady as it contends with a weakening yuan](https://feedsoft.ai/events/9596-china-holds-lending-rates-steady-as-it-contends-with-a-weakening-yuan.md) | -1.0% | -0.6% |

## Sources

- bloomberg.com: https://www.bloomberg.com/news/articles/2024-11-26/china-draws-a-red-line-for-the-yuan-as-trump-risks-return

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