# China's new yuan factor comes into play when currency weakens | Reuters

> 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.

- Date: 2017-07-03 · published 2017-07-03T12:00:00.000Z
- Category: policy · region China · magnitude low
- Page: https://feedsoft.ai/events/70193-china-s-new-yuan-factor-comes-into-play-when-currency-weakens-reuters
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Managed yuan stability reduces currency-driven swings in China's import demand for feed ingredients, so price effects on grains are indirect.

## Read by commodity

- USDCNY: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2021-12-09 | [China tightens control to restrain currency's rise \| AP News](https://feedsoft.ai/events/43818-china-tightens-control-to-restrain-currency-s-rise-ap-news.md) | +0.4% | +0.5% |
| USDCNY | 2017-09-11 | [China central bank relaxes yuan hedging rules as currency strengthens, capital outflows ease \| Reuters](https://feedsoft.ai/events/7799-china-central-bank-relaxes-yuan-hedging-rules-as-currency-strengthens-capital.md) | +1.1% | +2.7% |
| USDCNY | 2017-05-27 | [China Tweaks Yuan’s Fix to Keep Currency Stable - Caixin Global](https://feedsoft.ai/events/5661-china-tweaks-yuan-s-fix-to-keep-currency-stable-caixin-global.md) | -0.7% | -0.2% |
| USDCNY | 2017-05-29 | [PBOC's daily yuan fix is changing - a new “counter-cyclical adjustment factor”](https://feedsoft.ai/events/5666-pboc-s-daily-yuan-fix-is-changing-a-new-counter-cyclical-adjustment-factor.md) | -0.7% | -0.2% |
| USDCNY | 2017-06-26 | [China's yuan tweaks reflect Fed fears - Nikkei Asia](https://feedsoft.ai/events/11182-china-s-yuan-tweaks-reflect-fed-fears-nikkei-asia.md) | -0.8% | -1.3% |

## Sources

- reuters.com: https://www.reuters.com/article/technology/chinas-new-yuan-factor-comes-into-play-when-currency-weakens-idUSKBN19O0V1/

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