# This Is How China Keeps a Firm Grip on the Yuan

> The yuan hit its weakest point against the dollar in a decade, drawing attention to China's hybrid financial system where the state and markets both shape exchange rates. The article describes how the authorities manage the currency day to day.

- Date: 2018-10-31 · published 2018-10-31T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/62766-this-is-how-china-keeps-a-firm-grip-on-the-yuan
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Heavy state management of the yuan means its moves can be policy-driven rather than market-driven, which affects the dollar cost of Chinese feed and grain imports. Traders may need to factor in official intervention when pricing US export demand.

## Read by commodity

- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2018-10-31 | [Why the Chinese yuan is falling](https://feedsoft.ai/events/62761-why-the-chinese-yuan-is-falling.md) | -0.7% | -0.4% |
| USDCNY | 2017-09-21 | [Across The Border \| Why Beijing’s tight grip on the economy is bad news for the yuan \| South China Morning Post](https://feedsoft.ai/events/69190-across-the-border-why-beijing-s-tight-grip-on-the-economy-is-bad-news-for-the.md) | +1.1% | +0.6% |
| USDCNY | 2024-07-01 | [China Loosens Grip on Yuan With Weakest Fixing Since November](https://feedsoft.ai/events/30008-china-loosens-grip-on-yuan-with-weakest-fixing-since-november.md) | +0.0% | -0.1% |
| USDCNY | 2024-07-12 | [How bad is the Chinese economy?](https://feedsoft.ai/events/12304-how-bad-is-the-chinese-economy.md) | +0.0% | -1.1% |
| USDCNY | 2024-05-08 | [Is China Going To Devalue The Chinese Yuan (CNY)? \| Disruption Banking](https://feedsoft.ai/events/5873-is-china-going-to-devalue-the-chinese-yuan-cny-disruption-banking.md) | +0.2% | +0.4% |

## Sources

- wsj.com: https://www.wsj.com/articles/this-is-how-chinas-currency-works-1540954616?mod=e2tweu

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