# PBOC seeks to calm markets with reserve ratio cut - Asia Times

> The People's Bank of China cut reserve requirement ratios for foreign exchange deposits to slow yuan depreciation. The US dollar index hit 101.92, its highest since March 2020, on expectations of a 50 basis point Fed hike in May. Economists expect the yuan to keep weakening given Chinese lockdowns and rising US Treasury yields.

- Date: 2022-04-26 · published 2022-04-26T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/42068-pboc-seeks-to-calm-markets-with-reserve-ratio-cut-asia-times
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Soybean Meal](https://feedsoft.ai/c/SBM.md)

## Why it matters

A strong dollar and weak yuan raise the cost of US feed grains and meal for Chinese importers, which can dampen demand and pressure export prices. The central bank's intervention is unlikely to reverse the trend, so the bearish demand signal persists.

## Read by commodity

- DXY: bullish ▲
- SBM: bearish ▼
- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2023-03-20 | [China's yuan eases after reserve ratio cut; Fed decision in focus \| Financial Post](https://feedsoft.ai/events/37090-china-s-yuan-eases-after-reserve-ratio-cut-fed-decision-in-focus-financial-post.md) | -0.3% | -0.3% |
| USDCNY | 2020-10-11 | [Yuan off 17-month high after PBOC lowers forward reserve requirements \| The Sun Malaysia](https://feedsoft.ai/events/5559-yuan-off-17-month-high-after-pboc-lowers-forward-reserve-requirements-the-sun.md) | -0.2% | -1.0% |
| USDCNY | 2026-08-24 | [PBoC sets USD/CNY fixing above Reuters estimate, prompting yuan volatility and derivatives positioning - VT Markets](https://feedsoft.ai/events/18096-pboc-sets-usd-cny-fixing-above-reuters-estimate-prompting-yuan-volatility-and.md) | +0.1% | -0.4% |
| USDCNY | 2023-06-20 | [USD/CNH bulls approach 7.1800 as PBoC rate cut contrasts with hawkish Fed bias: Analytics and Market news from 20 June 2023 01:51](https://feedsoft.ai/events/11230-usd-cnh-bulls-approach-7-1800-as-pboc-rate-cut-contrasts-with-hawkish-fed-bias.md) | +1.6% | +0.8% |
| USDCNY | 2024-02-20 | [China slashes mortgage reference rates to revive property market \| Reuters](https://feedsoft.ai/events/31896-china-slashes-mortgage-reference-rates-to-revive-property-market-reuters.md) | +0.1% | +0.1% |
| DXY | 2024-12-18 | [Asia-Pacific markets live updates: Fed rate cuts, BOJ rate decision](https://feedsoft.ai/events/27170-asia-pacific-markets-live-updates-fed-rate-cuts-boj-rate-decision.md) | +0.7% | +1.5% |
| DXY | 2019-04-30 | [Market alert: Will the Fed cut interest rates? \| XTB](https://feedsoft.ai/events/59760-market-alert-will-the-fed-cut-interest-rates-xtb.md) | -0.1% | +0.7% |
| DXY | 2022-09-28 | [Bank of England moves to calm bond market rout after tax cut storm](https://feedsoft.ai/events/39828-bank-of-england-moves-to-calm-bond-market-rout-after-tax-cut-storm.md) | -1.8% | -1.5% |

## Sources

- asiatimes.com: https://asiatimes.com/2022/04/pboc-seeks-to-calm-markets-with-reserve-ratio-cut/

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