# China | RMB exchange rate sharp depreciation amid diverging monetary policy | BBVA Research

> The RMB fell about 3.7% against the dollar, from 6.367 to 6.6, driven by diverging monetary policy between China and the US, Omicron flare-ups and the Shanghai lockdown. BBVA expects further depreciation toward 6.6 with upside bias by year end.

- Date: 2022-05-03 · published 2022-05-03T12:00:00.000Z
- Category: macro · region China · magnitude medium
- Page: https://feedsoft.ai/events/8313-china-rmb-exchange-rate-sharp-depreciation-amid-diverging-monetary-policy-bbva
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md), [Soybean Meal](https://feedsoft.ai/c/SBM.md)

## Why it matters

Continued yuan weakness makes dollar-priced feed imports more expensive for Chinese buyers, which can reduce import demand and pressure global soymeal and corn prices.

## Read by commodity

- SBM: bearish ▼
- USDCNY: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDCNY | 2022-05-12 | 5 | +2.0% | 3.9 | Diverging monetary policy and the Shanghai lockdown were identified as drivers of RMB depreciation, adding to the sentiment pressure, though the piece is a broader summary of April's move. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2022-06-08 | [China’s yuan eases amid concerns of increasing policy divergence - Markets - Business Recorder](https://feedsoft.ai/events/41173-china-s-yuan-eases-amid-concerns-of-increasing-policy-divergence-markets.md) | +1.1% | +0.5% |
| USDCNY | 2018-07-30 | [China's yuan hits 13-month low on weaker fixing and depreciation bets](https://feedsoft.ai/events/64266-china-s-yuan-hits-13-month-low-on-weaker-fixing-and-depreciation-bets.md) | +0.3% | -0.1% |
| USDCNY | 2024-06-28 | [China’s central bank puts the yuan’s exchange-rate swings in crosshairs \| South China Morning Post](https://feedsoft.ai/events/30006-china-s-central-bank-puts-the-yuan-s-exchange-rate-swings-in-crosshairs-south.md) | -0.0% | -0.3% |
| USDCNY | 2022-01-06 | [China's yuan eases on hawkish Fed, warning of depreciation pressure \| Reuters](https://feedsoft.ai/events/43356-china-s-yuan-eases-on-hawkish-fed-warning-of-depreciation-pressure-reuters.md) | -0.1% | -0.0% |
| USDCNY | 2023-06-13 | [China cuts key policy rate as post-Covid recovery fizzles; yuan hits 6-month low](https://feedsoft.ai/events/35715-china-cuts-key-policy-rate-as-post-covid-recovery-fizzles-yuan-hits-6-month-low.md) | +0.5% | +0.3% |
| SBM | 2021-10-22 | [Unofficial exchange rate shows Argentina's de facto devaluation — MercoPress](https://feedsoft.ai/events/44847-unofficial-exchange-rate-shows-argentina-s-de-facto-devaluation-mercopress.md) | +1.5% | +11.6% |
| SBM | 2026-10-29 | [The sharp fall in the real exchange rate has caused soybean meal prices to collapse in Brazil and China, which is increasing pressure on prices in Ukraine.](https://feedsoft.ai/events/1392-the-sharp-fall-in-the-real-exchange-rate-has-caused-soybean-meal-prices-to.md) | -3.3% | — |
| SBM | 2018-05-14 | [IMF says supports Argentina floating exchange rate as peso tumbles](https://feedsoft.ai/events/65309-imf-says-supports-argentina-floating-exchange-rate-as-peso-tumbles.md) | -1.7% | -8.2% |

## Sources

- bbvaresearch.com: https://www.bbvaresearch.com/en/publicaciones/china-rmb-exchange-rate-sharp-depreciation-amid-diverging-monetary-policy/

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