# Prepare for more volatility in the Chinese yuan, regulator says

> China's foreign exchange regulator told businesses to prepare for more yuan volatility. One-year implied volatility has risen to 5%, versus under 2% in previous years, after the yuan strengthened to levels not seen since July 2018.

- Date: 2020-10-23 · published 2020-10-23T12:00:00.000Z
- Category: policy · region China · magnitude low
- Page: https://feedsoft.ai/events/50853-prepare-for-more-volatility-in-the-chinese-yuan-regulator-says
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Officials signalling greater exchange-rate flexibility raise hedging costs for importers of US feed commodities. Larger currency swings could make Chinese buyers more cautious on purchases.

## Read by commodity

- USDCNY: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2022-01-24 | [Forex regulator: China prepared for imminent US Fed tapering \| english.scio.gov.cn](https://feedsoft.ai/events/43360-forex-regulator-china-prepared-for-imminent-us-fed-tapering-english-scio-gov-cn.md) | +0.3% | -0.2% |
| USDCNY | 2017-01-03 | [China's yuan may see more volatility vs dollar after basket change \| Reuters](https://feedsoft.ai/events/10252-china-s-yuan-may-see-more-volatility-vs-dollar-after-basket-change-reuters.md) | -0.1% | -1.0% |
| USDCNY | 2024-11-26 | [China Draws a Red Line for the Yuan as Trump Risks Return - Bloomberg](https://feedsoft.ai/events/27629-china-draws-a-red-line-for-the-yuan-as-trump-risks-return-bloomberg.md) | +0.6% | +0.8% |
| USDCNY | 2017-05-30 | [China : PBOC tweaks model guiding Yuan fix to underpin financial stability \| BBVA Research](https://feedsoft.ai/events/5660-china-pboc-tweaks-model-guiding-yuan-fix-to-underpin-financial-stability-bbva.md) | -0.7% | -0.2% |
| USDCNY | 2019-02-25 | [China central bank vows to make yuan more flexible - Gulf Times](https://feedsoft.ai/events/60812-china-central-bank-vows-to-make-yuan-more-flexible-gulf-times.md) | -0.1% | +0.1% |

## Sources

- cnbc.com: https://www.cnbc.com/2020/10/23/prepare-for-more-volatility-in-the-chinese-yuan-regulator-says.html

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