# China Allows Yuan to Drop as Outflows, Dollar Test Central Bank’s Grip - Caixin Global

> The PBOC weakened its daily yuan reference rate to a level not seen since January as capital outflows and a resilient dollar pressured the central bank to loosen its grip. Spot yuan slid during the week as investors shifted toward higher-yielding assets.

- Date: 2024-05-23 · published 2024-05-23T12:00:00.000Z
- Category: macro · region China · magnitude medium
- Page: https://feedsoft.ai/events/30490-china-allows-yuan-to-drop-as-outflows-dollar-test-central-bank-s-grip-caixin
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md), [Soybeans](https://feedsoft.ai/c/SOY.md), [Soybean Meal](https://feedsoft.ai/c/SBM.md)

## Why it matters

A weaker yuan reduces Chinese purchasing power for dollar-priced feed imports, which tends to weigh on US soybean and meal demand from China.

## Read by commodity

- SBM: bearish ▼
- SOY: bearish ▼
- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2022-04-20 | [Chinese Yuan Extends Drop to Six-Month Low as U.S. Yields Rise - Caixin Global](https://feedsoft.ai/events/4946-chinese-yuan-extends-drop-to-six-month-low-as-u-s-yields-rise-caixin-global.md) | +2.5% | +5.4% |
| USDCNY | 2022-05-31 | [In Depth: Behind the Yuan’s Tumble Against the Dollar - Caixin Global](https://feedsoft.ai/events/41602-in-depth-behind-the-yuan-s-tumble-against-the-dollar-caixin-global.md) | -0.7% | +0.1% |
| USDCNY | 2019-05-18 | [Onshore Yuan Breaks 6.9 Against U.S. Dollar as Trade War Intensifies - Caixin Global](https://feedsoft.ai/events/59281-onshore-yuan-breaks-6-9-against-u-s-dollar-as-trade-war-intensifies-caixin.md) | -0.3% | +0.1% |
| USDCNY | 2024-06-27 | [China's Yuan Hits Seven-Month Low As Dollar Outflows Persist - Finimize](https://feedsoft.ai/events/30009-china-s-yuan-hits-seven-month-low-as-dollar-outflows-persist-finimize.md) | +0.0% | -0.5% |
| USDCNY | 2018-11-01 | [China’s Yuan Drops to a Decade-Low, 7 Per Dollar Now in Sight](https://feedsoft.ai/events/62762-china-s-yuan-drops-to-a-decade-low-7-per-dollar-now-in-sight.md) | -0.8% | -0.3% |
| SOY | 2019-05-18 | [Onshore Yuan Breaks 6.9 Against U.S. Dollar as Trade War Intensifies - Caixin Global](https://feedsoft.ai/events/59281-onshore-yuan-breaks-6-9-against-u-s-dollar-as-trade-war-intensifies-caixin.md) | +1.0% | +11.1% |
| SOY | 2024-07-09 | [China’s central bank is stuck in a policy dilemma](https://feedsoft.ai/events/12299-china-s-central-bank-is-stuck-in-a-policy-dilemma.md) | -8.2% | -11.1% |
| SOY | 2022-09-29 | [CNY/USD: Why China’s Yuan Hit Record Lows Against the Dollar - Bloomberg](https://feedsoft.ai/events/7207-cny-usd-why-china-s-yuan-hit-record-lows-against-the-dollar-bloomberg.md) | -2.8% | -1.9% |

## Sources

- caixinglobal.com: https://www.caixinglobal.com/2024-05-23/china-allows-yuan-to-drop-as-outflows-dollar-test-central-banks-grip-102199390.html

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