# China says yuan gains market-driven, two-way swings will be the norm | South China Morning Post

> China's foreign exchange regulator said the yuan's recent gains are driven by the economy and a weaker dollar. It expects two-way fluctuations to be the norm. It also said Chinese investment in US Treasuries is market-driven and that the Fed's policy impact on capital flows is weakening.

- Date: 2018-01-18 · published 2018-01-18T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/67199-china-says-yuan-gains-market-driven-two-way-swings-will-be-the-norm-south-china
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

The comments signal that the yuan will move more freely in both directions, which adds currency volatility to dollar-priced feed import costs. The statement itself does not signal a clear directional move.

## Read by commodity

- USDCNY: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2018-02-09 | [China says yuan no longer a one-way bet as currency slides against US dollar \| South China Morning Post](https://feedsoft.ai/events/66717-china-says-yuan-no-longer-a-one-way-bet-as-currency-slides-against-us-dollar.md) | +0.3% | +0.1% |
| USDCNY | 2017-10-10 | [Chinese firms rush to hedge as yuan swings begin to sting \| South China Morning Post](https://feedsoft.ai/events/6416-chinese-firms-rush-to-hedge-as-yuan-swings-begin-to-sting-south-china-morning.md) | -1.0% | -0.3% |
| USDCNY | 2017-10-18 | [China has ‘halted intervention in yuan exchange rate market’ \| South China Morning Post](https://feedsoft.ai/events/68678-china-has-halted-intervention-in-yuan-exchange-rate-market-south-china-morning.md) | +0.2% | -0.0% |
| USDCNY | 2017-05-29 | [China’s mysterious new yuan formula ‘no big quick fix for market volatility’ \| South China Morning Post](https://feedsoft.ai/events/71234-china-s-mysterious-new-yuan-formula-no-big-quick-fix-for-market-volatility.md) | -0.7% | -0.2% |
| USDCNY | 2017-07-04 | [China's yuan gains, but market wary of Beijing's currency policy - The Business Times](https://feedsoft.ai/events/70196-china-s-yuan-gains-but-market-wary-of-beijing-s-currency-policy-the-business.md) | +0.0% | -1.2% |

## Sources

- scmp.com: https://www.scmp.com/news/china/economy/article/2129504/china-says-yuan-gains-market-driven-two-way-swings-will-be-norm

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