# China should use part of its foreign reserves to stabilize yuan expectations: central bank adviser

> A central bank adviser said China should use part of its foreign reserves to stabilize yuan expectations, arguing the exchange rate has overshot. The yuan has fallen to eight-and-a-half-year lows against the dollar.

- Date: 2016-12-03 · published 2016-12-03T12:00:00.000Z
- Category: policy · region China · magnitude low
- Page: https://feedsoft.ai/events/73694-china-should-use-part-of-its-foreign-reserves-to-stabilize-yuan-expectations
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Possible reserve intervention to support the yuan would signal Beijing's effort to limit depreciation, which could ease pressure on import costs for feed buyers.

## Read by commodity

- USDCNY: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2023-07-06 | [China's yuan firms as central bank pledges again to stabilize currency](https://feedsoft.ai/events/35262-china-s-yuan-firms-as-central-bank-pledges-again-to-stabilize-currency.md) | -1.1% | -0.8% |
| USDCNY | 2022-09-29 | [Exclusive: China's state banks told to stock up for yuan intervention](https://feedsoft.ai/events/7209-exclusive-china-s-state-banks-told-to-stock-up-for-yuan-intervention.md) | -1.2% | +0.3% |
| USDCNY | 2022-09-06 | [Why China's central bank is shoring up the yuan](https://feedsoft.ai/events/12268-why-china-s-central-bank-is-shoring-up-the-yuan.md) | +0.4% | +3.1% |
| USDCNY | 2022-09-26 | [China acts to rein in yuan slump, poised to raise FX risk reserve ratio By Reuters](https://feedsoft.ai/events/7212-china-acts-to-rein-in-yuan-slump-poised-to-raise-fx-risk-reserve-ratio-by.md) | -0.2% | +1.9% |
| USDCNY | 2022-04-26 | [China cuts banks’ FX reserve ratio to support yuan - Business & Finance - Business Recorder](https://feedsoft.ai/events/7640-china-cuts-banks-fx-reserve-ratio-to-support-yuan-business-and-finance-business.md) | +0.8% | +1.4% |

## Sources

- reuters.com: https://www.reuters.com/article/us-china-economy-yuan-idUSKBN13S05Z/

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