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The yuan made swift gains in October 2021 while the PBOC stayed silent on the move. Analysts said the central bank may be tolerating the appreciation because of a large stock of dollar deposits in the banking system.
Markets remained focused on the central bank's intentions.
A PBOC that accepts yuan strength reduces the cost of dollar-priced imports for Chinese buyers. The effect on grain and feed prices is limited but relevant for import-demand expectations.
reuters.comOct 21, 2021After 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.
