# Volatility in yuan spurs bets China will widen its band - The Business Times

> The yuan has fallen about 11% against the dollar this year and is heading for its biggest annual drop since 1994. Investors are betting China may widen the currency's tight trading band from 2% to 3% in 2023 after heavy volatility in October.

- Date: 2022-11-30 · published 2022-11-30T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/38901-volatility-in-yuan-spurs-bets-china-will-widen-its-band-the-business-times
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Expected band widening would increase currency volatility for Chinese importers, raising hedging costs and adding uncertainty to dollar-denominated feed purchases.

## Read by commodity

- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2016-12-19 | [China outflows rising in both yuan payments, forex: Goldman Sachs - The Business Times](https://feedsoft.ai/events/73698-china-outflows-rising-in-both-yuan-payments-forex-goldman-sachs-the-business.md) | -0.2% | -1.8% |
| USDCNY | 2023-03-08 | [China's yuan weakens to 2-month low, with key 7-per-dollar level in sight  - The Business Times](https://feedsoft.ai/events/37091-china-s-yuan-weakens-to-2-month-low-with-key-7-per-dollar-level-in-sight-the.md) | -1.3% | -1.2% |
| USDCNY | 2017-02-26 | [China's yuan falls, but fears of US trade war may cap depreciation - The Business Times](https://feedsoft.ai/events/72719-china-s-yuan-falls-but-fears-of-us-trade-war-may-cap-depreciation-the-business.md) | +0.5% | +0.2% |
| USDCNY | 2022-12-06 | [Will the Chinese yuan fall with the economy? \| IG Bank Switzerland](https://feedsoft.ai/events/6580-will-the-chinese-yuan-fall-with-the-economy-ig-bank-switzerland.md) | +0.2% | -1.1% |
| USDCNY | 2017-10-26 | [China's yuan weakens on US dollar strength, set for 2nd weekly loss - The Business Times](https://feedsoft.ai/events/68677-china-s-yuan-weakens-on-us-dollar-strength-set-for-2nd-weekly-loss-the-business.md) | -0.5% | -0.5% |

## Sources

- businesstimes.com.sg: https://www.businesstimes.com.sg/companies-markets/volatility-yuan-spurs-bets-china-will-widen-its-band

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