# China's Yuan Trading Likely to Get More Volatile, Goldman Says - Caixin Global

> Goldman Sachs expects the yuan to become more volatile as China promotes wider international use of the currency. The bank expects offshore and onshore yuan rates to converge once exchange controls ease. Goldman also argues that yuan funding could reduce China's exposure to dollar-based sanctions.

- Date: 2018-12-17 · published 2018-12-17T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/61795-china-s-yuan-trading-likely-to-get-more-volatile-goldman-says-caixin-global
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Higher yuan volatility adds exchange-rate risk to Chinese import contracts for US farm goods. The note is a longer-term currency outlook with limited near-term effect on feed prices.

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2020-02-04 | [China Adds Market Support With More Cash, Strong Yuan Fix - Caixin Global](https://feedsoft.ai/events/5133-china-adds-market-support-with-more-cash-strong-yuan-fix-caixin-global.md) | -0.6% | -0.9% |
| USDCNY | 2023-03-31 | [Widening U.S.-China Rate Gap Set to Weigh on Yuan’s Resilience - Caixin Global](https://feedsoft.ai/events/37088-widening-u-s-china-rate-gap-set-to-weigh-on-yuan-s-resilience-caixin-global.md) | +0.1% | +0.8% |
| USDCNY | 2022-04-20 | [Chinese Yuan Extends Drop to Six-Month Low as U.S. Yields Rise - Caixin Global](https://feedsoft.ai/events/4946-chinese-yuan-extends-drop-to-six-month-low-as-u-s-yields-rise-caixin-global.md) | +2.5% | +5.4% |
| USDCNY | 2024-05-23 | [China Allows Yuan to Drop as Outflows, Dollar Test Central Bank’s Grip - Caixin Global](https://feedsoft.ai/events/30490-china-allows-yuan-to-drop-as-outflows-dollar-test-central-bank-s-grip-caixin.md) | +0.1% | +0.3% |
| USDCNY | 2023-10-01 | [China’s Golden Week May Spur Volatility for Yuan at ‘Red Line’](https://feedsoft.ai/events/34330-china-s-golden-week-may-spur-volatility-for-yuan-at-red-line.md) | 0.0% | +0.2% |

## Sources

- caixinglobal.com: https://www.caixinglobal.com/2018-12-17/chinas-yuan-trading-likely-to-get-more-volatile-goldman-says-101360062.html

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