# China's central bank denies devaluation is to counter tariffs

> China's yuan broke through 7 per dollar for the first time since 2008, and PBOC Governor Yi Gang said China would not engage in competitive devaluation. The move followed Trump's announcement of 10% tariffs on another $300 billion of Chinese goods.

- Date: 2019-08-05 · published 2019-08-05T12:00:00.000Z
- Category: macro · region China · magnitude medium
- Page: https://feedsoft.ai/events/5375-china-s-central-bank-denies-devaluation-is-to-counter-tariffs
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

The central bank's denial suggests the weakness may be limited, though a weaker yuan still makes Chinese exports cheaper and adds pressure on trade flows. The effect on agricultural prices depends on whether tariffs and retaliation expand.

## Read by commodity

- USDCNY: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDCNY | 2019-08-05 | 1 | +1.6% | 6.6 | The yuan broke 7 per dollar for the first time since 2008 following the tariff announcement, and the PBOC's comments on the move confirm the policy-driven currency shift. |
| USDCNY | 2019-08-07 | 5 | +2.6% | 3.9 | The break of 7 for the first time since 2008 followed the 10% tariff announcement; the PBOC's denial of competitive devaluation shows the policy-driven nature of the depreciation. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2024-07-09 | [China’s central bank is stuck in a policy dilemma](https://feedsoft.ai/events/12299-china-s-central-bank-is-stuck-in-a-policy-dilemma.md) | -0.1% | -1.9% |
| USDCNY | 2024-05-08 | [Is China Going To Devalue The Chinese Yuan (CNY)? \| Disruption Banking](https://feedsoft.ai/events/5873-is-china-going-to-devalue-the-chinese-yuan-cny-disruption-banking.md) | +0.2% | +0.4% |
| USDCNY | 2016-06-24 | [China Center Chart Dive: RMB devaluation — a guided market correction](https://feedsoft.ai/events/10882-china-center-chart-dive-rmb-devaluation-a-guided-market-correction.md) | +1.1% | +1.6% |
| USDCNY | 2024-01-24 | [Instant view: China central bank acts to support markets, economy](https://feedsoft.ai/events/32356-instant-view-china-central-bank-acts-to-support-markets-economy.md) | +0.0% | +0.2% |
| USDCNY | 2024-07-25 | [China central bank surprises by lending again at lower rates \| Reuters](https://feedsoft.ai/events/7521-china-central-bank-surprises-by-lending-again-at-lower-rates-reuters.md) | -0.6% | -1.8% |

## Sources

- cnbc.com: https://www.cnbc.com/2019/08/05/chinas-central-bank-denies-its-devaluing-countrys-currency-to-counter-tariffs.html

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