# Chinese yuan under pressure from medium-term loans cut: Strategist

> The People's Bank of China unexpectedly cut the rate on 700 billion yuan of one-year medium-term lending facility loans by 10 basis points to 2.85%, the first MLF rate cut since April 2020. Macquarie strategist Gareth Berry said the move would likely add downward pressure on the yuan, possibly pushing the rate toward 6.55 per dollar.

- Date: 2022-01-17 · published 2022-01-17T12:00:00.000Z
- Category: policy · region China · magnitude medium
- Page: https://feedsoft.ai/events/43361-chinese-yuan-under-pressure-from-medium-term-loans-cut-strategist
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

The easing signals Beijing's concern about growth, which could support Chinese feed demand over time, while a weaker yuan raises the dollar cost of imports.

## Read by commodity

- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2021-01-06 | [China moves to curb yuan rally pressure due to hot money and export concerns \| South China Morning Post](https://feedsoft.ai/events/49366-china-moves-to-curb-yuan-rally-pressure-due-to-hot-money-and-export-concerns.md) | +0.1% | +0.3% |
| USDCNY | 2024-11-26 | [China's yuan slides to four-month low on Trump's tariff promise \| Reuters](https://feedsoft.ai/events/27628-china-s-yuan-slides-to-four-month-low-on-trump-s-tariff-promise-reuters.md) | +0.6% | +0.8% |
| USDCNY | 2026-02-27 | [JPMorgan takes profit on Chinese yuan rally \| Reuters](https://feedsoft.ai/events/7896-jpmorgan-takes-profit-on-chinese-yuan-rally-reuters.md) | +0.7% | +1.0% |
| USDCNY | 2025-05-08 | [China’s yuan slips as PBOC guides currency lower - Markets - Business Recorder](https://feedsoft.ai/events/9620-china-s-yuan-slips-as-pboc-guides-currency-lower-markets-business-recorder.md) | -0.2% | -0.7% |
| USDCNY | 2020-07-03 | [Chinese yuan weakens to 7.0638 against USD Friday_Xinhua Finance Agency](https://feedsoft.ai/events/9736-chinese-yuan-weakens-to-7-0638-against-usd-friday-xinhua-finance-agency.md) | -0.9% | -1.3% |

## Sources

- cnbc.com: https://www.cnbc.com/2022/01/17/chinese-yuan-under-pressure-from-medium-term-loans-cut-strategist.html

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