# As tensions with US boil, China hints at weaker yuan - Nikkei Asia

> The PBOC lowered its yuan reference rate against the dollar to its weakest level since February 2008. The move came as relations with the US deteriorated over the coronavirus pandemic and the proposed Hong Kong security arrangements.

- Date: 2020-05-25 · published 2020-05-25T12:00:00.000Z
- Category: geopolitics · region China · magnitude medium
- Page: https://feedsoft.ai/events/53378-as-tensions-with-us-boil-china-hints-at-weaker-yuan-nikkei-asia
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

A reference rate at a 12-year low signals Beijing may allow further yuan weakness, which would raise the cost of dollar-priced grain and meal imports for Chinese buyers. Weaker currency terms can reduce China's appetite for US commodities.

## Read by commodity

- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2022-02-22 | [China's yuan weakens as Ukraine-Russia conflict adds to market anxiety \| INTERNATIONAL MARKET NEWS - Business Standard](https://feedsoft.ai/events/42927-china-s-yuan-weakens-as-ukraine-russia-conflict-adds-to-market-anxiety.md) | -0.3% | +0.5% |
| USDCNY | 2026-04-02 | [China’s yuan slips from 3-week high as Trump vows sustained strikes on Iran - Markets - Business Recorder](https://feedsoft.ai/events/19954-china-s-yuan-slips-from-3-week-high-as-trump-vows-sustained-strikes-on-iran.md) | -0.6% | -0.5% |
| USDCNY | 2026-03-12 | [Yuan Slips As Middle East Tensions Keep The Dollar On Top - Finimize](https://feedsoft.ai/events/11680-yuan-slips-as-middle-east-tensions-keep-the-dollar-on-top-finimize.md) | +0.1% | -0.5% |
| USDCNY | 2022-11-16 | [China’s yuan slips from 2-month high as blast in Poland hurts sentiment - Markets - Business Recorder](https://feedsoft.ai/events/38903-china-s-yuan-slips-from-2-month-high-as-blast-in-poland-hurts-sentiment-markets.md) | +1.3% | -1.3% |
| USDCNY | 2021-03-23 | [China's yuan dips as Xinjiang sanctions crimp risk sentiment \| Financial Post](https://feedsoft.ai/events/48337-china-s-yuan-dips-as-xinjiang-sanctions-crimp-risk-sentiment-financial-post.md) | +1.0% | +0.0% |

## Sources

- asia.nikkei.com: https://asia.nikkei.com/business/markets/currencies/as-tensions-with-us-boil-china-hints-at-weaker-yuan

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