# USD/CNY to rise as China’s capital outflows intensifies: Strategist

> A UBS foreign exchange strategist said China will keep losing capital and that the yuan will weaken further. He expects China's foreign exchange reserves to fall to $2.7-2.8 trillion by year-end. Economists polled by Reuters had expected a January reserves drop of about $10.5 billion.

- Date: 2017-02-07 · published 2017-02-07T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/72721-usd-cny-to-rise-as-china-s-capital-outflows-intensifies-strategist
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Capital outflows and reserve drawdowns signal continued pressure on the yuan, which tends to lift USD/CNY. A weaker yuan can reduce China's import demand for US and Brazilian feed commodities at the margin.

## Read by commodity

- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2016-12-05 | [Market bears smell blood as China scrambles to plug capital outflows](https://feedsoft.ai/events/73676-market-bears-smell-blood-as-china-scrambles-to-plug-capital-outflows.md) | +0.3% | +1.1% |
| USDCNY | 2025-02-27 | [China steps up scrutiny of capital flows as yuan depreciates](https://feedsoft.ai/events/26288-china-steps-up-scrutiny-of-capital-flows-as-yuan-depreciates.md) | -0.1% | +0.1% |
| USDCNY | 2022-05-05 | [US Fed rate hike: how can China stem capital outflow and prop up the yuan? \| South China Morning Post](https://feedsoft.ai/events/8315-us-fed-rate-hike-how-can-china-stem-capital-outflow-and-prop-up-the-yuan-south.md) | +1.7% | +0.8% |
| USDCNY | 2016-11-18 | [Exclusive - China ready to slow yuan descent, worried about capital outflows: sources](https://feedsoft.ai/events/74060-exclusive-china-ready-to-slow-yuan-descent-worried-about-capital-outflows.md) | +0.7% | +1.3% |
| USDCNY | 2017-03-02 | [China struggles to plug its capital drain - Nikkei Asia](https://feedsoft.ai/events/72227-china-struggles-to-plug-its-capital-drain-nikkei-asia.md) | +0.5% | +0.1% |

## Sources

- cnbc.com: https://www.cnbc.com/2017/02/06/usdcny-to-rise-as-chinas-capital-outflows-intensifies-strategist.html

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