# Chinese companies hang onto dollars, hedge to prepare for volatile yuan

> 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.

- Date: 2023-03-06 · published 2023-03-06T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/37089-chinese-companies-hang-onto-dollars-hedge-to-prepare-for-volatile-yuan
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

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.

## Read by commodity

- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2019-05-31 | [What happens if the Chinese yuan breaches the 7 to the US dollar](https://feedsoft.ai/events/59276-what-happens-if-the-chinese-yuan-breaches-the-7-to-the-us-dollar.md) | +0.1% | -0.4% |
| USDCNY | 2020-03-19 | [Chinese Yuan Slides As Finance Investors Rush To Safe Haven Dollar](https://feedsoft.ai/events/54323-chinese-yuan-slides-as-finance-investors-rush-to-safe-haven-dollar.md) | +0.9% | +0.3% |
| USDCNY | 2024-05-29 | [Chinese yuan falls to six-month low on dollar strength - Nikkei Asia](https://feedsoft.ai/events/30488-chinese-yuan-falls-to-six-month-low-on-dollar-strength-nikkei-asia.md) | -0.1% | +0.3% |
| USDCNY | 2016-10-13 | [Dollar stalls, yuan hits 6-year low on Chinese trade dip](https://feedsoft.ai/events/5888-dollar-stalls-yuan-hits-6-year-low-on-chinese-trade-dip.md) | +0.3% | +0.9% |
| USDCNY | 2016-06-24 | [Chinese yuan falls to more than 5-year low on Brexit fears](https://feedsoft.ai/events/10881-chinese-yuan-falls-to-more-than-5-year-low-on-brexit-fears.md) | +1.1% | +1.6% |

## Sources

- reuters.com: https://www.reuters.com/markets/currencies/chinese-companies-hang-onto-dollars-hedge-prepare-volatile-yuan-2023-03-06/

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