◂ Event Timeline

Sep 7, 2017MACROChina

PBOC Hasn't Embraced Yuan Gains Like This Since the Arab Spring

The People's Bank of China set the yuan reference rate higher for a ninth straight session, the longest run of strengthening since early 2011. The gains are the strongest central-bank support for the currency since the Arab Spring period.

WHY IT MATTERS

Sustained central-bank support for the yuan signals policy tolerance for a stronger currency, which can lower the yuan cost of dollar-priced feed imports. The effect on feed prices is indirect and currency-driven.

AFFECTSChinese Yuan (CNY per USD)▼

SOURCE
bloomberg.comBloomberg NewsSep 7, 2017

Price reaction & history

Chinese Yuan (CNY per USD)▼bearishSO FAR1d -0.6%5d +0.3%20d +2.0%

After 362 past bearish macro events, Chinese Yuan (CNY per USD) moved a median -0.1% over 5 sessions (42% higher; middle half -0.4% to +0.1%), and -0.2% over 20.

Jun 21, 2024USD/CNY: PBOC Gives Strongest Boost to Yuan Since April to Manage Decline - Bloomberg+0.1%
May 31, 2017Yuan Surges in Hong Kong as Traders See PBOC Squeezing Bears - Bloomberg-0.8%
Sep 1, 2020Yuan’s Jump to One-Year High Tests China’s Tolerance for Gains - Bloomberg-0.1%
Dec 8, 2021China's Yuan Highest Since 2018 as Easing Covid Worry Fuels Risk-On - Bloomberg+0.0%
Jun 30, 2020Chinese Yuan Gains on Strong PMI Readings, PBoC Easing-0.9%

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.

Linked price moves

Chinese Yuan (CNY per USD)-1.7%5 periods to Sep 8, 2017-3.6σ
The PBOC's ninth straight stronger fixing signaled official tolerance for yuan appreciation and guided the market lower in CNY per USD.

Chinese Yuan (CNY per USD) USDCNY · GP ▸

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