◂ Event Timeline

Jul 6, 2023POLICYChina

China's yuan firms as central bank pledges again to stabilize currency

The PBOC set its yuan midpoint at 7.2098 per dollar, weaker than the prior fix of 7.1968 but about 400 pips firmer than Reuters estimates. The central bank has been pushing back against yuan weakness through its fixings.

WHY IT MATTERS

Central bank fixings that lean against depreciation limit yuan weakness, which affects the cost of dollar-priced feed imports into China.

AFFECTSChinese Yuan (CNY per USD)▼

SOURCE
reuters.comGeorgina LeeJul 6, 2023

Price reaction & history

Chinese Yuan (CNY per USD)▼bearishSO FAR1d +0.0%5d -1.1%20d -0.8%

After 50 past bearish policy events, Chinese Yuan (CNY per USD) moved a median -0.1% over 5 sessions (46% higher; middle half -0.4% to +0.4%), and -0.0% over 20.

Dec 3, 2016China should use part of its foreign reserves to stabilize yuan expectations: central bank adviser+0.3%
Sep 6, 2022Why China's central bank is shoring up the yuan+0.4%
May 17, 2019China's central bank won't let yuan weaken past 7 to the dollar-sources+0.4%
Apr 27, 2022China economy: Central bank tries to slow weakening yuan vs US dollar+0.8%
Dec 19, 2024China's central bank offers strongest yuan support since July after dollar gains+0.2%

Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.

Chinese Yuan (CNY per USD) USDCNY · GP ▸

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