# Why China's tolerance for a cheaper currency may be temporary

> Currency markets are reading signals that China may tolerate a weaker yuan, as seen in the People's Bank of China's daily reference rate. The article suggests this tolerance may be temporary.

- Date: 2024-05-09 · published 2024-05-09T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/30489-why-china-s-tolerance-for-a-cheaper-currency-may-be-temporary
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Yuan weakness would raise the local cost of imported US and Brazilian feed commodities, a modest bearish factor for Chinese import demand and grain prices.

## Read by commodity

- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2019-06-11 | [Why ‘cracking seven’ is a big deal for China’s currency](https://feedsoft.ai/events/58820-why-cracking-seven-is-a-big-deal-for-china-s-currency.md) | -0.1% | -0.6% |
| USDCNY | 2021-03-31 | [China’s currency set for worst month since US trade war](https://feedsoft.ai/events/48332-china-s-currency-set-for-worst-month-since-us-trade-war.md) | -0.5% | -1.3% |
| USDCNY | 2018-01-09 | [China Changes the Way It Manages Yuan After Currency's Jump - Bloomberg](https://feedsoft.ai/events/67197-china-changes-the-way-it-manages-yuan-after-currency-s-jump-bloomberg.md) | -0.9% | -3.3% |
| USDCNY | 2016-06-27 | [How China’s yuan could be the currency whipping boy of Brexit - MarketWatch](https://feedsoft.ai/events/12455-how-china-s-yuan-could-be-the-currency-whipping-boy-of-brexit-marketwatch.md) | +0.6% | +1.0% |
| USDCNY | 2018-07-30 | [China's falling yuan stokes currency tensions](https://feedsoft.ai/events/64267-china-s-falling-yuan-stokes-currency-tensions.md) | +0.3% | -0.1% |

## Sources

- reuters.com: https://www.reuters.com/markets/currencies/why-chinas-tolerance-cheaper-currency-may-be-temporary-2024-05-09/

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