# Coronavirus: is China re-pegging the yuan to the US dollar to avert a financial crisis? | South China Morning Post

> 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.

- Date: 2020-04-09 · published 2020-04-09T12:00:00.000Z
- Category: policy · region China · magnitude medium
- Page: https://feedsoft.ai/events/53882-coronavirus-is-china-re-pegging-the-yuan-to-the-us-dollar-to-avert-a-financial
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

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.

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2017-01-01 | [China tweaks yuan basket to play down US dollar \| South China Morning Post](https://feedsoft.ai/events/73191-china-tweaks-yuan-basket-to-play-down-us-dollar-south-china-morning-post.md) | -0.1% | -1.0% |
| USDCNY | 2025-02-21 | [China’s central bank vows to enhance yuan amid looming risks from strong US dollar \| South China Morning Post](https://feedsoft.ai/events/26298-china-s-central-bank-vows-to-enhance-yuan-amid-looming-risks-from-strong-us.md) | +0.4% | -0.1% |
| USDCNY | 2021-01-06 | [China moves to curb yuan rally pressure due to hot money and export concerns \| South China Morning Post](https://feedsoft.ai/events/49366-china-moves-to-curb-yuan-rally-pressure-due-to-hot-money-and-export-concerns.md) | +0.1% | +0.3% |
| USDCNY | 2020-10-28 | [Yuan eases after China tweaks fixing formula to rein in strength \| Financial Post](https://feedsoft.ai/events/50848-yuan-eases-after-china-tweaks-fixing-formula-to-rein-in-strength-financial-post.md) | -0.4% | -1.9% |
| USDCNY | 2019-06-08 | [China is letting value of yuan slide to offset trade war tariffs, US Treasury Secretary Mnuchin says \| South China Morning Post](https://feedsoft.ai/events/58822-china-is-letting-value-of-yuan-slide-to-offset-trade-war-tariffs-us-treasury.md) | +0.3% | -0.4% |

## Sources

- scmp.com: https://www.scmp.com/economy/china-economy/article/3079243/coronavirus-china-re-pegging-yuan-us-dollar-avert-financial

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