# Why ‘cracking seven’ is a big deal for China’s currency

> If the yuan slips past 7 per dollar, it would reach its weakest level since the global financial crisis and breach a floor the central bank defended in 2016 and 2018. The 2016 defense cost China as much as $107 billion in reserves in a single month.

- Date: 2019-06-11 · published 2019-06-11T12:00:00.000Z
- Category: macro · region China · magnitude medium
- Page: https://feedsoft.ai/events/58820-why-cracking-seven-is-a-big-deal-for-china-s-currency
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md), [Soybeans](https://feedsoft.ai/c/SOY.md)

## Why it matters

Breaking 7 would signal a shift in Chinese currency policy that makes imported US commodities costlier in yuan terms, a bearish factor for US export-linked grain demand.

## Read by commodity

- SOY: bearish ▼
- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2024-05-09 | [Why China's tolerance for a cheaper currency may be temporary](https://feedsoft.ai/events/30489-why-china-s-tolerance-for-a-cheaper-currency-may-be-temporary.md) | +0.0% | +0.4% |
| USDCNY | 2016-12-29 | [What Is China Trying to Do With Its Currency?    - WSJ](https://feedsoft.ai/events/73691-what-is-china-trying-to-do-with-its-currency-wsj.md) | -1.0% | -1.1% |
| USDCNY | 2019-04-30 | [China is letting its currency decline in a 'snub' to Trump, ING says](https://feedsoft.ai/events/59802-china-is-letting-its-currency-decline-in-a-snub-to-trump-ing-says.md) | +0.4% | +2.6% |
| USDCNY | 2021-03-31 | [China’s currency set for worst month since US trade war](https://feedsoft.ai/events/48332-china-s-currency-set-for-worst-month-since-us-trade-war.md) | -0.5% | -1.3% |
| USDCNY | 2018-07-30 | [China's falling yuan stokes currency tensions](https://feedsoft.ai/events/64267-china-s-falling-yuan-stokes-currency-tensions.md) | +0.3% | -0.1% |
| SOY | 2024-07-09 | [China’s central bank is stuck in a policy dilemma](https://feedsoft.ai/events/12299-china-s-central-bank-is-stuck-in-a-policy-dilemma.md) | -8.2% | -11.1% |
| SOY | 2019-03-25 | [Competing Currencies Mostly Bearish for U.S. Crops](https://feedsoft.ai/events/60309-competing-currencies-mostly-bearish-for-u-s-crops.md) | -2.2% | -3.0% |
| SOY | 2022-02-28 | [Soymeal Demand Slowing in China](https://feedsoft.ai/events/42704-soymeal-demand-slowing-in-china.md) | +5.4% | +7.5% |

## Sources

- afr.com: https://www.afr.com/world/asia/why-cracking-seven-is-a-big-deal-for-china-s-currency-20190612-p51wru

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