# EXPLAINER-Why is China's yuan so close to its lower limit?

> China's yuan has weakened more than 5% against the dollar this year and has recently been pressed to the lower end of its trading band as the dollar strengthened. The article explains that the central bank's midpoint fixing mechanism, including a counter-cyclical factor, has been set far firmer than expected, partly restraining the yuan's moves.

- Date: 2023-09-28 · published 2023-09-28T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/34326-explainer-why-is-china-s-yuan-so-close-to-its-lower-limit
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

A weaker yuan makes Chinese buying of dollar-priced feed ingredients like soybeans and corn costlier, which can dampen Chinese import demand and pressure global prices.

## Read by commodity

- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2018-10-31 | [Why the Chinese yuan is falling](https://feedsoft.ai/events/62761-why-the-chinese-yuan-is-falling.md) | -0.7% | -0.4% |
| USDCNY | 2018-11-01 | [Caixin Explains: Why 7 Is the Yuan’s Unlucky Number - Caixin Global](https://feedsoft.ai/events/62270-caixin-explains-why-7-is-the-yuan-s-unlucky-number-caixin-global.md) | -0.8% | -0.3% |
| USDCNY | 2023-02-13 | [China's yuan hits 5-week low, South Korea export data darkens outlook](https://feedsoft.ai/events/37550-china-s-yuan-hits-5-week-low-south-korea-export-data-darkens-outlook.md) | +0.8% | +0.5% |
| USDCNY | 2017-09-08 | [3 Experts: After China Yuan Makes A Move, What’s Next?](https://feedsoft.ai/events/69193-3-experts-after-china-yuan-makes-a-move-what-s-next.md) | +1.1% | +2.6% |
| USDCNY | 2025-04-08 | [China's yuan hits 2023 lows on signs PBOC is tolerant of some weakness \| Reuters](https://feedsoft.ai/events/25349-china-s-yuan-hits-2023-lows-on-signs-pboc-is-tolerant-of-some-weakness-reuters.md) | +0.1% | -0.5% |

## Sources

- finance.yahoo.com: https://finance.yahoo.com/news/explainer-why-chinas-yuan-close-083237107.html

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