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ING analyst Iris Pang says the PBoC added counter-cyclical factors to the yuan fixing formula, a move that produced a 0.55% yuan appreciation on June 1. ING notes the change is opaque because each bank can calibrate the factor.
The fixing change is a policy tool that can keep the yuan from weakening further as the Fed tightens. Stable yuan conditions support Chinese import demand for dollar-priced feed ingredients.
octaafrica.netJun 22, 2017After 50 past bearish policy events, Chinese Yuan (CNY per USD) moved a median -0.1% over 5 sessions (46% higher; middle half -0.4% to +0.4%), and -0.0% 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.
