# Yuan falls out of favour with China’s exporters as fears of depreciation mount

> Chinese exporters are holding dollars rather than yuan because they expect further yuan depreciation after the Federal Reserve signaled delayed rate cuts. China's exports fell 7.5% year on year in March to $279.7 billion, below expectations.

- Date: 2024-05-01 · published 2024-05-01T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/30957-yuan-falls-out-of-favour-with-china-s-exporters-as-fears-of-depreciation-mount
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Weak Chinese export demand and a weakening yuan point to softer Chinese industrial and feed-related import demand, which tends to pressure global agricultural commodity prices.

## Read by commodity

- DXY: bullish ▲
- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| 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% |
| USDCNY | 2022-01-06 | [China's yuan eases on hawkish Fed, warning of depreciation pressure \| Reuters](https://feedsoft.ai/events/43356-china-s-yuan-eases-on-hawkish-fed-warning-of-depreciation-pressure-reuters.md) | -0.1% | -0.0% |
| USDCNY | 2018-07-30 | [China's yuan hits 13-month low on weaker fixing and depreciation bets](https://feedsoft.ai/events/64266-china-s-yuan-hits-13-month-low-on-weaker-fixing-and-depreciation-bets.md) | +0.3% | -0.1% |
| USDCNY | 2018-07-20 | [China’s yuan falls against dollar, helping exporters \| The Seattle Times](https://feedsoft.ai/events/64270-china-s-yuan-falls-against-dollar-helping-exporters-the-seattle-times.md) | +0.2% | +1.6% |
| USDCNY | 2025-02-27 | [China steps up scrutiny of capital flows as yuan depreciates](https://feedsoft.ai/events/26288-china-steps-up-scrutiny-of-capital-flows-as-yuan-depreciates.md) | -0.1% | +0.1% |
| DXY | 2026-04-29 | [South African rand falls more than 1% ahead of Fed decision \| Reuters](https://feedsoft.ai/events/20000-south-african-rand-falls-more-than-1-ahead-of-fed-decision-reuters.md) | -0.1% | +0.3% |
| DXY | 2016-06-30 | [China's yuan sees biggest quarterly fall on record](https://feedsoft.ai/events/12456-china-s-yuan-sees-biggest-quarterly-fall-on-record.md) | +0.6% | +0.8% |
| DXY | 2022-12-28 | [China's yuan weakens as U.S. dollar gains on sustained inflation outlook \| Financial Post](https://feedsoft.ai/events/38448-china-s-yuan-weakens-as-u-s-dollar-gains-on-sustained-inflation-outlook.md) | -0.2% | -2.2% |

## Sources

- scmp.com: https://www.scmp.com/economy/china-economy/article/3260529/chinas-exporters-shun-yuan-embrace-alternatives-depreciation-fears-build

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