# China scales back measures propping up its currency now that yuan has surged

> 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.

- Date: 2017-09-11 · published 2017-09-11T12:00:00.000Z
- Category: policy · region China · magnitude medium
- Page: https://feedsoft.ai/events/7804-china-scales-back-measures-propping-up-its-currency-now-that-yuan-has-surged
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

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.

## Read by commodity

- USDCNY: neutral

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDCNY | 2017-09-11 | 1 | +0.7% | 4.1 | 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. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2017-09-11 | [China central bank relaxes yuan hedging rules as currency strengthens, capital outflows ease \| Reuters](https://feedsoft.ai/events/7799-china-central-bank-relaxes-yuan-hedging-rules-as-currency-strengthens-capital.md) | +1.1% | +2.7% |
| USDCNY | 2019-10-11 | [U.S.-China currency deal won't change dollar-yuan dynamics  experts](https://feedsoft.ai/events/56819-u-s-china-currency-deal-won-t-change-dollar-yuan-dynamics-experts.md) | -0.5% | -1.7% |
| USDCNY | 2017-07-03 | [China's new yuan factor comes into play when currency weakens \| Reuters](https://feedsoft.ai/events/70193-china-s-new-yuan-factor-comes-into-play-when-currency-weakens-reuters.md) | +0.3% | -0.8% |
| USDCNY | 2025-06-25 | [China doubles down on promoting yuan as confidence in U.S. dollar ebbs](https://feedsoft.ai/events/24430-china-doubles-down-on-promoting-yuan-as-confidence-in-u-s-dollar-ebbs.md) | -0.1% | -0.2% |
| USDCNY | 2024-05-01 | [China Ramps Up Yuan Support as Fixing Tops Estimates by Record](https://feedsoft.ai/events/30955-china-ramps-up-yuan-support-as-fixing-tops-estimates-by-record.md) | -0.3% | +0.1% |

## Sources

- cnbc.com: https://www.cnbc.com/2017/09/11/china-scales-back-measures-propping-up-its-currency-now-that-yuan-has-surged.html

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