# China tweaks yuan basket to play down US dollar | South China Morning Post

> China is adding 11 currencies to the trade-weighted basket used to measure the yuan's value, reducing the weight of the US dollar. The central bank is promoting a multi-currency measure to shift market attention away from the yuan-dollar rate, after the yuan lost about 7 percent against the dollar in 2016.

- Date: 2017-01-01 · published 2017-01-01T12:00:00.000Z
- Category: policy · region China · magnitude low
- Page: https://feedsoft.ai/events/73191-china-tweaks-yuan-basket-to-play-down-us-dollar-south-china-morning-post
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A basket-based yuan framework signals a less dollar-focused currency policy, which can reduce the sensitivity of Chinese import costs to dollar strength. The direct effect on feed commodity prices is small.

## Read by commodity

- DXY: neutral
- USDCNY: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2017-01-03 | [China's yuan may see more volatility vs dollar after basket change \| Reuters](https://feedsoft.ai/events/10252-china-s-yuan-may-see-more-volatility-vs-dollar-after-basket-change-reuters.md) | -0.1% | -1.0% |
| USDCNY | 2019-10-20 | [China’s yuan exchange rate ‘appropriate’ after recent weakening, central bank chief says \| South China Morning Post](https://feedsoft.ai/events/56815-china-s-yuan-exchange-rate-appropriate-after-recent-weakening-central-bank.md) | -0.2% | -0.8% |
| USDCNY | 2024-12-31 | [China to lower dollar, euro and yen weightings in CFETS yuan basket in 2025](https://feedsoft.ai/events/27166-china-to-lower-dollar-euro-and-yen-weightings-in-cfets-yuan-basket-in-2025.md) | +0.4% | -0.8% |
| USDCNY | 2021-05-25 | [China state banks buy dollars to curb rapid yuan rally -sources](https://feedsoft.ai/events/47320-china-state-banks-buy-dollars-to-curb-rapid-yuan-rally-sources.md) | -0.6% | +1.0% |
| USDCNY | 2023-01-13 | [China’s yuan: central bank to boost flexibility of exchange rate to handle ‘shocks’ from overseas monetary policy \| South China Morning Post](https://feedsoft.ai/events/37987-china-s-yuan-central-bank-to-boost-flexibility-of-exchange-rate-to-handle.md) | +0.7% | +1.1% |
| DXY | 2020-03-26 | [Central Banks Use Swap Lines to Maintain the Flow of US Dollar \| Yale School of Management](https://feedsoft.ai/events/6587-central-banks-use-swap-lines-to-maintain-the-flow-of-us-dollar-yale-school-of.md) | -0.8% | -0.7% |
| DXY | 2017-01-25 | [Tokyo on edge as Washington, Detroit blast strong dollar - Nikkei Asia](https://feedsoft.ai/events/73231-tokyo-on-edge-as-washington-detroit-blast-strong-dollar-nikkei-asia.md) | -0.7% | -0.7% |
| DXY | 2020-03-03 | [Too early for U.S. dollar sell-off despite Fed rate cuts - Reuters poll](https://feedsoft.ai/events/6187-too-early-for-u-s-dollar-sell-off-despite-fed-rate-cuts-reuters-poll.md) | +0.3% | +5.5% |

## Sources

- scmp.com: https://www.scmp.com/news/china/economy/article/2058431/china-tweaks-yuan-basket-play-down-us-dollar

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