# China Adds Adjustment Factor To Renminibi Fixing, Diverging From Free-Float? - ActionForex

> China's central bank added a counter-cyclical adjustment factor to the USDCNY daily fixing calculation, with CFETS confirming the change. The yuan sold off to its lowest level since January 2017 after the move. Commentators say the fix is becoming less transparent and more government-driven.

- Date: 2017-05-30 · published 2017-05-30T12:00:00.000Z
- Category: policy · region China · magnitude low
- Page: https://feedsoft.ai/events/5662-china-adds-adjustment-factor-to-renminibi-fixing-diverging-from-free-float
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

A stronger yuan trend can lift Chinese purchasing power for imports, but the effect on feed commodity prices is limited and indirect.

## 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 counter-cyclical factor added to the fixing, and USDCNY's fall afterward, helped lower the pair, though the article's timing and 'sold off' wording are ambiguous. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2017-05-29 | [PBOC's daily yuan fix is changing - a new “counter-cyclical adjustment factor”](https://feedsoft.ai/events/5666-pboc-s-daily-yuan-fix-is-changing-a-new-counter-cyclical-adjustment-factor.md) | -0.7% | -0.2% |
| USDCNY | 2022-01-24 | [Forex regulator: China prepared for imminent US Fed tapering \| english.scio.gov.cn](https://feedsoft.ai/events/43360-forex-regulator-china-prepared-for-imminent-us-fed-tapering-english-scio-gov-cn.md) | +0.3% | -0.2% |
| USDCNY | 2021-05-31 | [PBOC raises requirement for banks' forex deposits - Chinadaily.com.cn](https://feedsoft.ai/events/47322-pboc-raises-requirement-for-banks-forex-deposits-chinadaily-com-cn.md) | +0.5% | +1.4% |
| USDCNY | 2024-05-01 | [China Ramps Up Yuan Support as Fixing Tops Estimates by Record](https://feedsoft.ai/events/30955-china-ramps-up-yuan-support-as-fixing-tops-estimates-by-record.md) | -0.3% | +0.1% |
| USDCNY | 2017-07-12 | [PBOC: China should expand Renminbi's trading band - People's Daily Online](https://feedsoft.ai/events/70197-pboc-china-should-expand-renminbi-s-trading-band-people-s-daily-online.md) | -0.8% | -1.4% |

## Sources

- actionforex.com: https://www.actionforex.com/action-insight/china-watch/17848-china-adds-adjustment-factor-to-renminibi-fixing-diverging-from-free-float/

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