# Exclusive: China FX regulator surveys banks about positioning as yuan plunges

> China's FX regulator surveyed banks about their yuan positions as the currency fell more than 13% against the dollar so far this year. The yuan was on track for its biggest annual drop since 1994, driven by aggressive Federal Reserve tightening and a slowing Chinese economy.

- Date: 2022-10-25 · published 2022-10-25T12:00:00.000Z
- Category: macro · region China · magnitude medium
- Page: https://feedsoft.ai/events/6931-exclusive-china-fx-regulator-surveys-banks-about-positioning-as-yuan-plunges
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Yuan weakness raises the cost of dollar-priced soybean and feed imports for China and can slow purchases, which is bearish for US soy and meal prices.

## Read by commodity

- DXY: bullish ▲
- USDCNY: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDCNY | 2022-10-26 | 1 | -1.3% | -4.6 | The FX regulator's bank survey on Oct 25 signaled official concern over the yuan's slide and foreshadowed intervention, shaping positioning sentiment. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2016-11-18 | [Exclusive - China ready to slow yuan descent, worried about capital outflows: sources](https://feedsoft.ai/events/74060-exclusive-china-ready-to-slow-yuan-descent-worried-about-capital-outflows.md) | +0.7% | +1.3% |
| USDCNY | 2018-07-04 | [Exclusive: China to be less interventionist on yuan than in 2015 - sources \| Reuters](https://feedsoft.ai/events/64269-exclusive-china-to-be-less-interventionist-on-yuan-than-in-2015-sources-reuters.md) | +0.6% | +2.7% |
| USDCNY | 2023-09-14 | [Exclusive: China asks big banks to stagger and adjust dollar purchases, sources say](https://feedsoft.ai/events/34327-exclusive-china-asks-big-banks-to-stagger-and-adjust-dollar-purchases-sources.md) | +0.2% | +0.4% |
| USDCNY | 2024-12-11 | [EXCLUSIVE: Chinese authorities are considering a weaker yuan as Trump trade risks loom \| Reuters](https://feedsoft.ai/events/27164-exclusive-chinese-authorities-are-considering-a-weaker-yuan-as-trump-trade.md) | +0.5% | +1.1% |
| USDCNY | 2022-02-07 | [China could take further measures to rein in yuan- former regulator](https://feedsoft.ai/events/42932-china-could-take-further-measures-to-rein-in-yuan-former-regulator.md) | -0.1% | -0.7% |
| DXY | 2024-06-28 | [China’s central bank puts the yuan’s exchange-rate swings in crosshairs \| South China Morning Post](https://feedsoft.ai/events/30006-china-s-central-bank-puts-the-yuan-s-exchange-rate-swings-in-crosshairs-south.md) | -0.7% | -0.5% |
| DXY | 2016-11-14 | [Chinese yuan tumbles to a seven-year low as dollar surges \| South China Morning Post](https://feedsoft.ai/events/7742-chinese-yuan-tumbles-to-a-seven-year-low-as-dollar-surges-south-china-morning.md) | +1.4% | +0.8% |
| DXY | 2021-06-17 | [China’s PBOC Braces for Weaker Yuan as Fed Plans Tapering - Bloomberg](https://feedsoft.ai/events/7116-china-s-pboc-braces-for-weaker-yuan-as-fed-plans-tapering-bloomberg.md) | +1.1% | +1.7% |

## Sources

- reuters.com: https://www.reuters.com/markets/currencies/exclusive-china-fx-regulator-surveys-banks-about-positioning-yuan-plunges-2022-10-25/

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