# Rock and hard place? China opts to hold yuan

> A Reuters commentary discusses China's decision to hold the yuan steady rather than signal a large decline. It argues that a visible devaluation could accelerate capital flight as asset prices weaken.

- Date: 2024-01-26 · published 2024-01-26T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/32353-rock-and-hard-place-china-opts-to-hold-yuan
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Policy restraint on the yuan limits sharp currency moves that would change the dollar cost of Chinese feed imports, so the commodity impact is small.

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2024-09-25 | [China’s march to strong yuan is long and perilous](https://feedsoft.ai/events/28557-china-s-march-to-strong-yuan-is-long-and-perilous.md) | -0.2% | +1.3% |
| USDCNY | 2022-05-11 | [How PBOC might respond to China's weakening yuan](https://feedsoft.ai/events/10987-how-pboc-might-respond-to-china-s-weakening-yuan.md) | +0.0% | -0.8% |
| USDCNY | 2018-09-03 | [Trade war could force heavier hand from China on yuan](https://feedsoft.ai/events/63264-trade-war-could-force-heavier-hand-from-china-on-yuan.md) | +0.4% | +0.6% |
| USDCNY | 2017-04-06 | [China’s Efforts to Boost the Yuan](https://feedsoft.ai/events/71719-china-s-efforts-to-boost-the-yuan.md) | -0.0% | +0.1% |
| USDCNY | 2017-09-06 | [China's yuan has fully recovered from 2016 and analysts say there's still room to run](https://feedsoft.ai/events/9415-china-s-yuan-has-fully-recovered-from-2016-and-analysts-say-there-s-still-room.md) | -0.0% | +1.8% |

## Sources

- reuters.com: https://www.reuters.com/markets/asia/rock-hard-place-china-opts-hold-yuan-mike-dolan-2024-01-26/

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