# PBOC's daily yuan fix is changing - a new “counter-cyclical adjustment factor”

> The PBOC is changing its daily yuan fix to include a counter-cyclical adjustment factor, which ANZ says reduces the influence of the closing spot rate. ANZ notes the change may already have been in practice since April. The new formula reduces transparency and gives authorities discretion over the fix.

- Date: 2017-05-29 · published 2017-05-29T12:00:00.000Z
- Category: policy · region China · magnitude low
- Page: https://feedsoft.ai/events/5666-pboc-s-daily-yuan-fix-is-changing-a-new-counter-cyclical-adjustment-factor
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Less predictable yuan fixing adds currency uncertainty for Chinese import costs, a modest and indirect factor for feed commodity prices.

## Read by commodity

- USDCNY: neutral

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDCNY | 2017-06-01 | 5 | -1.2% | -3.7 | The new fixing formula reduces the influence of spot closes and gives authorities discretion to set stronger yuan fixes. |
| USDCNY | 2017-05-31 | 1 | -0.6% | -6.1 | It describes the same fixing change, which reduces the influence of spot closes and gives authorities discretion, a mechanism consistent with yuan strength. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2017-05-30 | [China Adds Adjustment Factor To Renminibi Fixing, Diverging From Free-Float? - ActionForex](https://feedsoft.ai/events/5662-china-adds-adjustment-factor-to-renminibi-fixing-diverging-from-free-float.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 | 2022-01-22 | [Yuan exchange rate seen staying stable - Chinadaily.com.cn](https://feedsoft.ai/events/43359-yuan-exchange-rate-seen-staying-stable-chinadaily-com-cn.md) | +0.3% | -0.2% |
| USDCNY | 2025-05-06 | [Beijing’s firm yuan nudge can cool Asia FX rally](https://feedsoft.ai/events/9619-beijing-s-firm-yuan-nudge-can-cool-asia-fx-rally.md) | -0.9% | -1.1% |
| 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% |

## Sources

- forexlive.com: https://www.forexlive.com/centralbank/!/pbocs-daily-yuan-fix-is-changing-a-new-counter-cyclical-adjustment-factor-20170529

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