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Analysts believe the PBoC may be re-pegging the yuan to the dollar to prevent a financial crisis and bring stability during the pandemic. A PBoC deputy governor said the yuan would fluctuate around 7 per dollar in the future.
The article recalls that the PBoC held the rate at 6.83 from late 2008 to June 2010.
A tighter yuan peg would reduce currency volatility for Chinese importers and could stabilise their purchasing of feed ingredients. Speculation alone has limited direct price impact on feed markets.
scmp.comKaren YeungApr 9, 2020After 138 past policy events, Chinese Yuan (CNY per USD) moved a median -0.1% over 5 sessions (47% higher; middle half -0.4% to +0.4%), and -0.1% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
