# China’s mysterious new yuan formula ‘no big quick fix for market volatility’ | South China Morning Post

> The People's Bank of China confirmed it may add a countercyclical factor to the pricing model it gives market makers for setting the yuan's daily reference rate against the dollar. Analysts say the change points to Beijing's concern about keeping market volatility in check.

- Date: 2017-05-29 · published 2017-05-29T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/71234-china-s-mysterious-new-yuan-formula-no-big-quick-fix-for-market-volatility
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

A larger state role in setting the yuan fix could dampen currency swings that affect China's import purchasing power for feed ingredients. The effect on grain prices is indirect and likely modest.

## Read by commodity

- USDCNY: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2019-01-22 | [Volatility expected for Chinese yuan, as experts diverge on 2019 outlooks \| South China Morning Post](https://feedsoft.ai/events/61315-volatility-expected-for-chinese-yuan-as-experts-diverge-on-2019-outlooks-south.md) | -0.5% | -0.3% |
| USDCNY | 2024-08-30 | [China’s yuan volatility rising on interest rates, US presidential election: Goldman \| South China Morning Post](https://feedsoft.ai/events/29023-china-s-yuan-volatility-rising-on-interest-rates-us-presidential-election.md) | -0.1% | -1.2% |
| USDCNY | 2018-01-18 | [China says yuan gains market-driven, two-way swings will be the norm \| South China Morning Post](https://feedsoft.ai/events/67199-china-says-yuan-gains-market-driven-two-way-swings-will-be-the-norm-south-china.md) | -1.1% | -1.4% |
| 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 | 2018-04-12 | [Analysis  \| Why devaluing the yuan is a no-no for China amid US trade war fears \| South China Morning Post](https://feedsoft.ai/events/65713-analysis-why-devaluing-the-yuan-is-a-no-no-for-china-amid-us-trade-war-fears.md) | +0.1% | +1.5% |

## Sources

- scmp.com: https://www.scmp.com/news/china/economy/article/2096034/chinas-mysterious-new-yuan-formula-no-big-quick-fix-market

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