# Is there a dollar funding squeeze in China? - Central Banking

> Chinese banks experienced a minor US dollar shortage as companies and banks worldwide rushed to hoard dollars amid coronavirus fears. The dollar's rise worsened the squeeze, although China's dollar money market funding costs stayed calm. The article argues China could benefit from joining the Federal Reserve's dollar swap network.

- Date: 2020-04-03 · published 2020-04-03T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/53879-is-there-a-dollar-funding-squeeze-in-china-central-banking
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Tight dollar funding strengthens the dollar and can slow trade finance for commodity imports, which weighs on purchase pace for grains and oilseeds. The effect has so far been limited.

## Read by commodity

- DXY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2024-04-23 | [Where king dollar is causing pain the most](https://feedsoft.ai/events/30983-where-king-dollar-is-causing-pain-the-most.md) | -0.4% | -1.5% |
| DXY | 2019-02-25 | [Dollar crown intact as central banks emulate Fed tightening pause](https://feedsoft.ai/events/60766-dollar-crown-intact-as-central-banks-emulate-fed-tightening-pause.md) | +0.2% | +0.4% |
| DXY | 2024-04-25 | [Central bankers in Southeast Asia are closely watching the Fed as a strong dollar pummels their currencies \| Fortune](https://feedsoft.ai/events/31053-central-bankers-in-southeast-asia-are-closely-watching-the-fed-as-a-strong.md) | +0.1% | -1.1% |
| DXY | 2023-11-01 | [The Aussie Dollar is Tied to China’s Outlook](https://feedsoft.ai/events/33883-the-aussie-dollar-is-tied-to-china-s-outlook.md) | -1.4% | -2.9% |
| DXY | 2018-09-30 | [Is the US dollar heading for a crash?  \| The National](https://feedsoft.ai/events/63245-is-the-us-dollar-heading-for-a-crash-the-national.md) | +0.7% | +1.8% |

## Sources

- centralbanking.com: https://www.centralbanking.com/central-banks/financial-stability/7520281/is-there-a-dollar-funding-squeeze-in-china

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