# Chinese Yuan Weakens As PBoC Pumps More Liquidity Into Economy

> The People's Bank of China cut its one-year medium-term lending rate from 3.15% to 2.95% and lowered the reserve requirement ratio by 50 basis points, releasing roughly $42 billion into the banking system. The yuan weakened as a result, and the 10-year government bond yield fell to around 0.04%. The moves were timed ahead of the first-quarter GDP release.

- Date: 2020-04-16 · published 2020-04-16T12:00:00.000Z
- Category: macro · region China · magnitude medium
- Page: https://feedsoft.ai/events/53877-chinese-yuan-weakens-as-pboc-pumps-more-liquidity-into-economy
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Monetary easing supports Chinese economic activity and feed demand over time, but lower rates weaken the yuan, which tends to make dollar-priced imports like soybeans and corn more expensive for Chinese buyers.

## Read by commodity

- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2020-07-30 | [Chinese Yuan Slips As PBoC Injects Liquidity Into Banking System](https://feedsoft.ai/events/52326-chinese-yuan-slips-as-pboc-injects-liquidity-into-banking-system.md) | -0.9% | -1.7% |
| USDCNY | 2022-05-11 | [How PBOC might respond to China's weakening yuan](https://feedsoft.ai/events/10987-how-pboc-might-respond-to-china-s-weakening-yuan.md) | +0.0% | -0.8% |
| USDCNY | 2022-10-24 | [China stocks tumble as Xi's team fans economic concern; yuan weakens \| Reuters](https://feedsoft.ai/events/6930-china-stocks-tumble-as-xi-s-team-fans-economic-concern-yuan-weakens-reuters.md) | +0.1% | -1.0% |
| USDCNY | 2022-12-06 | [Will the Chinese yuan fall with the economy? \| IG Bank Switzerland](https://feedsoft.ai/events/6580-will-the-chinese-yuan-fall-with-the-economy-ig-bank-switzerland.md) | +0.2% | -1.1% |
| USDCNY | 2022-07-27 | [China’s yuan weakens as Fed looms, property, COVID weigh - Markets - Business Recorder](https://feedsoft.ai/events/40700-china-s-yuan-weakens-as-fed-looms-property-covid-weigh-markets-business-recorder.md) | -0.2% | +1.3% |

## Sources

- fxdailyreport.com: https://fxdailyreport.com/chinese-yuan-weakens-as-pboc-pumps-more-liquidity-into-economy/

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