# Globalised yuan complicates Beijing's bid to stem capital flight

> The yuan hit an 18-month low and was on course for its worst month since the 1994 currency reforms, having fallen more than 4.5% against the dollar in April. Analysts said foreign selling now drives the decline, not domestic capital outflows, which limits Beijing's ability to restrict capital movement.

- Date: 2022-04-29 · published 2022-04-29T12:00:00.000Z
- Category: macro · region China · magnitude medium
- Page: https://feedsoft.ai/events/7641-globalised-yuan-complicates-beijing-s-bid-to-stem-capital-flight
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Continued yuan weakness raises the dollar cost of Chinese purchases of US and Brazilian feed ingredients, which can soften import demand. Stronger dollar conditions add further downside risk for the yuan.

## Read by commodity

- DXY: bullish ▲
- USDCNY: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDCNY | 2022-04-28 | 1 | +1.0% | 4.2 | Describes yuan hitting an 18-month low and its worst month since 1994 amid foreign selling, which captures the late-April depreciation momentum, though published a day after the move. |
| DXY | 2022-04-28 | 5 | +2.5% | 4.3 | Yuan fell to an 18-month low, with large April losses against the dollar adding to the broad dollar's gain. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2016-12-27 | [Beijing desperate to stem tide of capital outflow  - Nikkei Asia](https://feedsoft.ai/events/73703-beijing-desperate-to-stem-tide-of-capital-outflow-nikkei-asia.md) | +0.2% | -1.0% |
| USDCNY | 2023-03-31 | [Widening U.S.-China Rate Gap Set to Weigh on Yuan’s Resilience - Caixin Global](https://feedsoft.ai/events/37088-widening-u-s-china-rate-gap-set-to-weigh-on-yuan-s-resilience-caixin-global.md) | +0.1% | +0.8% |
| 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 | 2016-11-22 | [Chinese Yuan Fix 'Encourages Capital Flight': Ex-PBOC Policymaker \| Fortune](https://feedsoft.ai/events/74064-chinese-yuan-fix-encourages-capital-flight-ex-pboc-policymaker-fortune.md) | +0.0% | +0.8% |
| 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% |
| DXY | 2016-12-27 | [Beijing desperate to stem tide of capital outflow  - Nikkei Asia](https://feedsoft.ai/events/73703-beijing-desperate-to-stem-tide-of-capital-outflow-nikkei-asia.md) | +0.3% | -1.3% |
| DXY | 2020-10-18 | [Sterling and Yuan Resilience, While Rate Differentials Aid Dollar?  - Marc to Market  Marc Chandler on Global FX and Capital Markets](https://feedsoft.ai/events/50814-sterling-and-yuan-resilience-while-rate-differentials-aid-dollar-marc-to-market.md) | -0.7% | -1.7% |
| DXY | 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) | +0.7% | -1.2% |

## Sources

- reuters.com: https://www.reuters.com/world/china/globalised-yuan-complicates-beijings-bid-stem-capital-flight-2022-04-29/

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