# China’s yuan: central bank to boost flexibility of exchange rate to handle ‘shocks’ from overseas monetary policy | South China Morning Post

> The People's Bank of China pledged to increase yuan exchange rate flexibility and monitor shocks from overseas monetary tightening. The yuan had rallied over several weeks. The central bank prioritized domestic economic needs.

- Date: 2023-01-13 · published 2023-01-13T12:00:00.000Z
- Category: policy · region China · magnitude low
- Page: https://feedsoft.ai/events/37987-china-s-yuan-central-bank-to-boost-flexibility-of-exchange-rate-to-handle
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Policy signals on yuan flexibility affect the currency's path against the dollar, which influences the cost of imported feed ingredients for China. The grain price impact is limited.

## Read by commodity

- USDCNY: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2019-10-20 | [China’s yuan exchange rate ‘appropriate’ after recent weakening, central bank chief says \| South China Morning Post](https://feedsoft.ai/events/56815-china-s-yuan-exchange-rate-appropriate-after-recent-weakening-central-bank.md) | -0.2% | -0.8% |
| USDCNY | 2021-06-18 | [Central bank targets exchange rate stability - Chinadaily.com.cn](https://feedsoft.ai/events/7118-central-bank-targets-exchange-rate-stability-chinadaily-com-cn.md) | +0.3% | +0.5% |
| USDCNY | 2019-02-25 | [China central bank vows to make yuan more flexible - Gulf Times](https://feedsoft.ai/events/60812-china-central-bank-vows-to-make-yuan-more-flexible-gulf-times.md) | -0.1% | +0.1% |
| USDCNY | 2017-01-01 | [China tweaks yuan basket to play down US dollar \| South China Morning Post](https://feedsoft.ai/events/73191-china-tweaks-yuan-basket-to-play-down-us-dollar-south-china-morning-post.md) | -0.1% | -1.0% |
| USDCNY | 2017-09-24 | [China wants to reduce control of changes in yuan's exchange rate - Chinadaily.com.cn](https://feedsoft.ai/events/69191-china-wants-to-reduce-control-of-changes-in-yuan-s-exchange-rate-chinadaily-com.md) | +1.0% | +0.7% |

## Sources

- scmp.com: https://www.scmp.com/economy/china-economy/article/3206761/chinas-yuan-central-bank-boost-flexibility-exchange-rate-handle-shocks-overseas-monetary-policy

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