# Yuan off 17-month high after PBOC lowers forward reserve requirements | The Sun Malaysia

> The yuan retreated from a 17-month high on Monday as investors unwound long positions after the PBOC cut the FX forward reserve requirement to zero from 20%. The move lowered the cost of shorting the yuan following a recent sharp rally. Analysts differed on whether the central bank was signaling discomfort with yuan gains.

- Date: 2020-10-11 · published 2020-10-11T12:00:00.000Z
- Category: macro · region China · magnitude medium
- Page: https://feedsoft.ai/events/5559-yuan-off-17-month-high-after-pboc-lowers-forward-reserve-requirements-the-sun
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

A softer yuan raises USD/CNY and makes dollar-priced Chinese imports of soybeans and other feed inputs relatively more expensive for Chinese buyers. The direction of the effect on feed prices is uncertain.

## Read by commodity

- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2019-08-09 | [China lowers yuan mid-point to fresh 11-year low, but higher than forecasts \| Reuters](https://feedsoft.ai/events/8381-china-lowers-yuan-mid-point-to-fresh-11-year-low-but-higher-than-forecasts.md) | -0.2% | +1.0% |
| USDCNY | 2025-01-13 | [China's yuan hovers near 16-month low despite official support - The HinduBusinessLine](https://feedsoft.ai/events/26718-china-s-yuan-hovers-near-16-month-low-despite-official-support-the.md) | -0.1% | -0.4% |
| USDCNY | 2018-09-28 | [NEXEN \| Reuters Insider - Asia Insight: Yuan eases to 1-month low, set for longest monthly losing streak since 1994](https://feedsoft.ai/events/63266-nexen-reuters-insider-asia-insight-yuan-eases-to-1-month-low-set-for-longest.md) | -0.3% | +0.8% |
| USDCNY | 2024-11-28 | [Chinese yuan to hit record lows as U.S. tariff threat mounts, investment banks forecast](https://feedsoft.ai/events/27630-chinese-yuan-to-hit-record-lows-as-u-s-tariff-threat-mounts-investment-banks.md) | +0.1% | +0.7% |
| USDCNY | 2020-10-10 | [Forex (Foreign Exchange) News: PBOC Lowers Risk Reserves Ratio for FX Forwards - Bloomberg](https://feedsoft.ai/events/5556-forex-foreign-exchange-news-pboc-lowers-risk-reserves-ratio-for-fx-forwards.md) | -0.2% | -1.0% |

## Sources

- thesun.my: https://thesun.my/business/yuan-off-17-month-high-after-pboc-lowers-forward-reserve-requirements-ga4561383/

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