# CNY: More volatile and vulnerable - Commerzbank - Forex Crunch

> Commerzbank says China's corporate debt problem is adding volatility and vulnerability to the yuan. Chinese firms have increased offshore borrowing since 2016, which raises their exposure to currency risk and hedging demand. The bank expects the PBoC to defend the 7.00 level into 2019 provided the trade conflict does not escalate.

- Date: 2018-12-31 · published 2018-12-31T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/61791-cny-more-volatile-and-vulnerable-commerzbank-forex-crunch
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Yuan weakness would make Chinese buyers of US soybeans and other farm goods less willing to buy, while a stable yuan supports import demand. The analysis is a currency outlook with limited direct price impact on feed commodities.

## Read by commodity

- USDCNY: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2019-11-28 | [CNY: Entering a volatile year](https://feedsoft.ai/events/56294-cny-entering-a-volatile-year.md) | +0.2% | -0.5% |
| USDCNY | 2019-01-18 | [China: Deteriorating data could be problematic for CNY - TDS - Forex Crunch](https://feedsoft.ai/events/61316-china-deteriorating-data-could-be-problematic-for-cny-tds-forex-crunch.md) | -0.4% | -0.1% |
| USDCNY | 2019-04-29 | [USD/CNY: Sharp appreciation or depreciation unlikely in 2019? - ING - Forex Crunch](https://feedsoft.ai/events/59805-usd-cny-sharp-appreciation-or-depreciation-unlikely-in-2019-ing-forex-crunch.md) | +0.1% | +2.5% |
| USDCNY | 2019-01-31 | [CNY: Guided by the US-China trade talks - Westpac - Forex Crunch](https://feedsoft.ai/events/61312-cny-guided-by-the-us-china-trade-talks-westpac-forex-crunch.md) | +0.5% | -0.1% |
| USDCNY | 2023-02-28 | [USD/CNY: Yuan could see a modest appreciation in the coming quarters – Commerzbank — Octa](https://feedsoft.ai/events/37553-usd-cny-yuan-could-see-a-modest-appreciation-in-the-coming-quarters-commerzbank.md) | -0.2% | -0.9% |

## Sources

- forexcrunch.com: https://www.forexcrunch.com/blog/2018/12/31/cny-more-volatile-and-vulnerable-commerzbank/

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