# China economy: How PBOC controls the yuan (RMB) amid trade war

> The onshore yuan fell to levels not seen since February 2008 and the offshore yuan hit its weakest since trading began. Analysts are watching how far Beijing will let the currency fall amid the trade war with the US.

- Date: 2019-08-28 · published 2019-08-28T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/57794-china-economy-how-pboc-controls-the-yuan-rmb-amid-trade-war
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Continued yuan weakness reduces the cost of Chinese imports and adds uncertainty to demand for US farm products, weighing on grain and meal prices.

## Read by commodity

- USDCNY: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2019-08-27 | [China economy: PBOC could be trying to shore up the yuan (RMB)](https://feedsoft.ai/events/57792-china-economy-pboc-could-be-trying-to-shore-up-the-yuan-rmb.md) | +0.4% | -0.5% |
| USDCNY | 2019-04-04 | [U.S.-China trade optimism to help yuan overcome concerns over weakening economy: Reuters poll](https://feedsoft.ai/events/59803-u-s-china-trade-optimism-to-help-yuan-overcome-concerns-over-weakening-economy.md) | +0.1% | +0.3% |
| USDCNY | 2019-01-29 | [Chinese renminbi (CNY) set to stay firm amid trade talks \| ECONOMETER](https://feedsoft.ai/events/61311-chinese-renminbi-cny-set-to-stay-firm-amid-trade-talks-econometer.md) | -0.0% | -0.9% |
| USDCNY | 2020-02-01 | [China’s Yuan Climbs Past Key Levels as Trade Tensions Ease](https://feedsoft.ai/events/55309-china-s-yuan-climbs-past-key-levels-as-trade-tensions-ease.md) | +1.2% | +0.6% |
| USDCNY | 2018-08-27 | [China yuan counter-cyclical factor: currency tweak is trade war dovish](https://feedsoft.ai/events/63741-china-yuan-counter-cyclical-factor-currency-tweak-is-trade-war-dovish.md) | +0.4% | +0.8% |

## Sources

- cnbc.com: https://www.cnbc.com/2019/08/28/china-economy-how-pboc-controls-the-yuan-rmb-amid-trade-war.html

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