# Chinese yuan's strength expected to reverse in 2022, Fitch says

> Fitch Ratings expects the yuan to weaken in 2022 as external demand for Chinese goods softens and US-China monetary policy diverges. It estimates the dollar-yuan rate will reach 6.7 by the end of next year, from 6.37 on December 21.

- Date: 2021-12-21 · published 2021-12-21T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/43820-chinese-yuan-s-strength-expected-to-reverse-in-2022-fitch-says
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

A weaker yuan would raise China's dollar-denominated feed import costs, which could dampen Chinese buying of US and Brazilian soy and meal. The forecast is a rating-agency view rather than a near-term shock.

## Read by commodity

- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2021-11-02 | [Macroscope \| Why the wind behind the Chinese yuan’s strength is likely to die down in 2022 \| South China Morning Post](https://feedsoft.ai/events/44273-macroscope-why-the-wind-behind-the-chinese-yuan-s-strength-is-likely-to-die.md) | -0.1% | -0.5% |
| 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 | 2023-08-31 | [EXCLUSIVE: Chinese exporters using currency swaps to retain dollars as yuan sags \| Reuters](https://feedsoft.ai/events/34799-exclusive-chinese-exporters-using-currency-swaps-to-retain-dollars-as-yuan-sags.md) | +0.6% | +0.2% |
| USDCNY | 2021-10-18 | [Yuan slips after China's Q3 GDP slower than expected - Markets - Business Recorder](https://feedsoft.ai/events/7479-yuan-slips-after-china-s-q3-gdp-slower-than-expected-markets-business-recorder.md) | -0.8% | -0.8% |
| 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% |

## Sources

- haberintelifi.aa.com.tr: https://haberintelifi.aa.com.tr/en/economy/chinese-yuans-strength-expected-to-reverse-in-2022-fitch-says/2453736

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