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The PBOC's undisclosed counter-cyclical factor, introduced in May, has only been applied on days when the yuan's prior close was weaker than intended. Investors suspect it is designed to keep the yuan stable and limit depreciation expectations.
Managed yuan stability reduces currency-driven swings in China's import demand for feed ingredients, so price effects on grains are indirect.
reuters.comWinni Zhou, Andrew GalbraithJul 3, 2017After 42 past neutral policy events, Chinese Yuan (CNY per USD) moved a median -0.0% over 5 sessions (50% higher; middle half -0.3% to +0.4%), and -0.2% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
