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China is preparing to adjust its yuan fixing process to slow the currency's fall, according to sources. Pressure has come from foreign portfolio outflows and the PBOC's rate cut in August while other central banks raised rates.
A managed slowdown in yuan depreciation would modestly support Chinese import purchasing power, but the impact on feed commodity prices is indirect.
cnbc.comReutersSep 28, 2022
reuters.comSep 27, 2022After 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.
Reports of a planned tweak to the fixing process signaled authorities would lean against the fall, supporting the yuan's rebound.
Reports of fixing tweaks to slow the fall confirm depreciation pressure from portfolio outflows and policy divergence, though they act as a brake rather than a driver.
