# How China Manages Its Currency—and Why That Matters

> The yuan lost about 3% against the dollar in 2023 and traded near 16-year lows in September. The dollar was buying about 7.11 yuan at the time of writing.

- Date: 2023-12-27 · published 2023-12-27T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/32924-how-china-manages-its-currency-and-why-that-matters
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Yuan weakness raises the dollar cost of Chinese imports of feed grains and meal, which can slow purchases when margins tighten.

## Read by commodity

- USDCNY: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2018-04-17 | [China currency moves hang in the balance in U.S. trade spat \| Reuters](https://feedsoft.ai/events/65710-china-currency-moves-hang-in-the-balance-in-u-s-trade-spat-reuters.md) | +0.6% | +1.0% |
| USDCNY | 2017-10-04 | [China’s currency balancing act \| ANZ](https://feedsoft.ai/events/68680-china-s-currency-balancing-act-anz.md) | -1.0% | -0.8% |
| USDCNY | 2018-05-10 | [Opinion: Why China’s Currency Is Becoming a Safe Haven - Caixin Global](https://feedsoft.ai/events/65236-opinion-why-china-s-currency-is-becoming-a-safe-haven-caixin-global.md) | +0.2% | +0.5% |
| USDCNY | 2017-04-10 | [Opinion \| Why PBOC’s halt in currency intervention may be temporary \| South China Morning Post](https://feedsoft.ai/events/71711-opinion-why-pboc-s-halt-in-currency-intervention-may-be-temporary-south-china.md) | -0.2% | +0.1% |
| USDCNY | 2017-07-04 | [China's yuan gains, but market wary of Beijing's currency policy - The Business Times](https://feedsoft.ai/events/70196-china-s-yuan-gains-but-market-wary-of-beijing-s-currency-policy-the-business.md) | +0.0% | -1.2% |

## Sources

- wsj.com: https://www.wsj.com/finance/currencies/how-china-manages-its-currencyand-why-that-matters-322cbc04

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