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Some Chinese companies are holding onto dollar balances and hedging in preparation for a volatile yuan. Their behaviour runs counter to bank forecasts for a stronger yuan in 2023.
If companies keep dollars rather than converting them, the yuan could weaken, which would raise the cost of dollar-priced grain and meal imports for Chinese buyers. The effect on feed prices is limited.
reuters.comWinni ZhouMar 6, 2023After 398 past bullish macro events, Chinese Yuan (CNY per USD) moved a median +0.0% over 5 sessions (56% higher; middle half -0.3% to +0.5%), and +0.0% over 20.
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.
