# China Tweaks Yuan’s Fix to Keep Currency Stable - Caixin Global

> The PBOC's currency trading arm added a countercyclical component to the daily yuan fixing calculation to smooth investor sentiment and the herd effect. Analysts said it gives the central bank more room to limit yuan fluctuations and runs against the earlier goal of a more market-oriented exchange rate.

- Date: 2017-05-27 · published 2017-05-27T12:00:00.000Z
- Category: policy · region China · magnitude low
- Page: https://feedsoft.ai/events/5661-china-tweaks-yuan-s-fix-to-keep-currency-stable-caixin-global
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Greater yuan stability reduces currency-driven swings in Chinese import demand for feed ingredients, a modest factor for soybean and meal pricing.

## Read by commodity

- USDCNY: neutral

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDCNY | 2017-05-31 | 1 | -0.6% | -6.1 | The announced countercyclical fixing component gives the PBOC room to resist dollar strength, which supported the yuan and contributed to the drop in USDCNY. |
| USDCNY | 2017-06-01 | 5 | -1.2% | -3.7 | The countercyclical component gives the PBOC more room to limit depreciation and steer the currency, which contributed to the yuan's rise. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2017-05-30 | [China : PBOC tweaks model guiding Yuan fix to underpin financial stability \| BBVA Research](https://feedsoft.ai/events/5660-china-pboc-tweaks-model-guiding-yuan-fix-to-underpin-financial-stability-bbva.md) | -0.7% | -0.2% |
| USDCNY | 2017-07-03 | [China's new yuan factor comes into play when currency weakens \| Reuters](https://feedsoft.ai/events/70193-china-s-new-yuan-factor-comes-into-play-when-currency-weakens-reuters.md) | +0.3% | -0.8% |
| USDCNY | 2017-06-26 | [China's yuan tweaks reflect Fed fears - Nikkei Asia](https://feedsoft.ai/events/11182-china-s-yuan-tweaks-reflect-fed-fears-nikkei-asia.md) | -0.8% | -1.3% |
| USDCNY | 2019-10-11 | [U.S.-China currency deal won't change dollar-yuan dynamics  experts](https://feedsoft.ai/events/56819-u-s-china-currency-deal-won-t-change-dollar-yuan-dynamics-experts.md) | -0.5% | -1.7% |
| USDCNY | 2021-12-09 | [China tightens control to restrain currency's rise \| AP News](https://feedsoft.ai/events/43818-china-tightens-control-to-restrain-currency-s-rise-ap-news.md) | +0.4% | +0.5% |

## Sources

- caixinglobal.com: https://www.caixinglobal.com/2017-05-27/china-tweaks-yuans-fix-to-keep-currency-stable-101095772.html

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