◂ Event Timeline

Jan 26, 2021MACROChina

Chinese Yuan Outlook: Tightening Measures From China’s Central Bank Sends A Warning Shot To Risk Markets

The People's Bank of China withdrew about $12 billion of liquidity from the banking system, following earlier tightening aimed at property prices. PBOC adviser Ma Jun warned of asset bubbles, and Chinese stocks fell 1.5% to 2%.

WHY IT MATTERS

Signs of tighter Chinese monetary policy can weigh on risk appetite and Chinese demand expectations for imported feed ingredients. The yuan itself barely moved, so the direct link to feed prices is limited.

AFFECTSChinese Yuan (CNY per USD)◆

SOURCE
exchangerates.org.ukJames ElliotJan 26, 2021

Price reaction & history

Chinese Yuan (CNY per USD)◆neutralSO FAR1d -0.2%5d -0.2%20d -0.2%

After 169 past neutral macro events, Chinese Yuan (CNY per USD) moved a median +0.0% over 5 sessions (50% higher; middle half -0.3% to +0.2%), and -0.0% over 20.

Aug 17, 2017Markets still bewildered after China central bank explains yuan 'X'-factor - The Business Times-0.5%
Sep 22, 2023China’s yuan bounces on state bank support, offshore tightness - Markets - Business Recorder-0.1%
Sep 29, 2022'Do not bet': China's central bank PBOC warns against yuan speculation-1.2%
Oct 22, 2021China's yuan eases after regulator warn of possible actions to counter higher fluctuations - Markets - Business Recorder-0.0%
Jan 22, 2024China’s yuan holds steady on unchanged lending rates; offshore yuan liquidity tight - Markets - Business Recorder-0.2%

Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.

Chinese Yuan (CNY per USD) USDCNY · GP ▸

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