# Yuan’s Rally Faces Test After Banks Tweak Daily Reference Rate - Caixin Global

> Chinese banks stopped including the counter-cyclical factor in calculating the yuan's daily reference rate, a change that allows them more room to submit weaker quotes. The reference rate was set at 6.7195 per dollar, in line with market estimates.

- Date: 2020-10-28 · published 2020-10-28T12:00:00.000Z
- Category: policy · region China · magnitude medium
- Page: https://feedsoft.ai/events/50849-yuan-s-rally-faces-test-after-banks-tweak-daily-reference-rate-caixin-global
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

The change gives Beijing less direct control over the yuan, which may increase currency volatility for importers of US grains and oilseeds. Weaker yuan fixings would raise the local-currency cost of dollar-priced imports.

## Read by commodity

- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2020-10-28 | [Yuan eases after China tweaks fixing formula to rein in strength \| Financial Post](https://feedsoft.ai/events/50848-yuan-eases-after-china-tweaks-fixing-formula-to-rein-in-strength-financial-post.md) | -0.4% | -1.9% |
| USDCNY | 2021-10-20 | [China Sets Weaker-Than-Expected Yuan Fix, Adds More Cash  - Caixin Global](https://feedsoft.ai/events/7480-china-sets-weaker-than-expected-yuan-fix-adds-more-cash-caixin-global.md) | -0.0% | -0.1% |
| USDCNY | 2026-02-27 | [Yuan Snaps Rising Streak After China Cuts Cost to Short Currency - Bloomberg](https://feedsoft.ai/events/7897-yuan-snaps-rising-streak-after-china-cuts-cost-to-short-currency-bloomberg.md) | +0.7% | +1.0% |
| USDCNY | 2020-07-03 | [PBOC Softens Yuan-Dollar Central Parity Rate by 72 Bips to 7.0638](https://feedsoft.ai/events/9735-pboc-softens-yuan-dollar-central-parity-rate-by-72-bips-to-7-0638.md) | -0.9% | -1.3% |
| 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% |

## Sources

- caixinglobal.com: https://www.caixinglobal.com/2020-10-28/yuans-rally-faces-test-after-banks-tweak-daily-reference-rate-101619676.html

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