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China began rolling back measures that had propped up the yuan, scrapping a 20 percent reserve requirement on yuan forward trades and removing a reserve requirement on yuan deposits for foreign banks. The yuan has risen 6.7 percent against the dollar this year, reversing last year's losses.
Easing these curbs makes it cheaper to buy dollars and sell yuan, which may limit further yuan gains and affect the cost of dollar-priced grain imports. The change is a currency policy adjustment with limited direct effect on feed prices.
cnbc.comSophia YanSep 11, 2017After 42 past neutral policy events, Chinese Yuan (CNY per USD) moved a median -0.0% over 5 sessions (50% higher; middle half -0.3% to +0.4%), and -0.2% 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.
Scrapping the 20% FX forward reserve requirement on 2017-09-11 removed a measure that had propped up the yuan, a same-day policy change that plausibly contributed to the sharp currency move.
