# China's yuan weakens, prompting dollar sales by state banks

> The yuan weakened against the dollar on strong corporate demand for dollars, pushing it past 6.92 per dollar in early trade. State-owned banks sold dollars onshore to slow the slide.

- Date: 2017-03-09 · published 2017-03-09T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/72221-china-s-yuan-weakens-prompting-dollar-sales-by-state-banks
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

A weaker yuan raises the cost of dollar-priced imports for China, including feed ingredients, which can temper Chinese buying at the margin. Intervention signals that authorities are limiting the move.

## Read by commodity

- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2016-06-27 | [China Weakens Yuan Fixing by Most Since August as Dollar Surges - Bloomberg](https://feedsoft.ai/events/12454-china-weakens-yuan-fixing-by-most-since-august-as-dollar-surges-bloomberg.md) | +0.6% | +1.0% |
| USDCNY | 2017-06-27 | [China's yuan again slightly weakens, corporate US dollar demand strong - Times of News](https://feedsoft.ai/events/11181-china-s-yuan-again-slightly-weakens-corporate-us-dollar-demand-strong-times-of.md) | -0.6% | -1.3% |
| USDCNY | 2016-12-29 | [China expands CFETS index basket, yuan seen weakening vs. dollar By Reuters](https://feedsoft.ai/events/73681-china-expands-cfets-index-basket-yuan-seen-weakening-vs-dollar-by-reuters.md) | -1.0% | -1.1% |
| USDCNY | 2021-07-28 | [Asian currencies: Chinese yuan, Hong Kong dollar weaken as China stocks fall](https://feedsoft.ai/events/46285-asian-currencies-chinese-yuan-hong-kong-dollar-weaken-as-china-stocks-fall.md) | -0.6% | -0.6% |
| USDCNY | 2024-04-16 | [China's cycle of dollar hoarding and weakening yuan gets vicious](https://feedsoft.ai/events/30951-china-s-cycle-of-dollar-hoarding-and-weakening-yuan-gets-vicious.md) | +0.0% | -0.1% |

## Sources

- reuters.com: https://www.reuters.com/article/uk-china-yuan-idUSKBN16G0AH/

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