# New fixing mechanism limits renminbi depreciation against the U.S. dollar - Swiss Economicblogs.org

> The People's Bank of China introduced a counter-cyclical adjustment factor into its daily USD/CNY reference rate calculation. The change adds a macroeconomic weighting to the fixing, giving the central bank more control over the exchange rate. The move is designed to reduce pressure on the renminbi if the dollar strengthens again.

- Date: 2017-06-01 · published 2017-06-01T12:00:00.000Z
- Category: policy · region China · magnitude medium
- Page: https://feedsoft.ai/events/8836-new-fixing-mechanism-limits-renminbi-depreciation-against-the-u-s-dollar-swiss
- Commodities: [Corn](https://feedsoft.ai/c/CORN.md), [Soybeans](https://feedsoft.ai/c/SOY.md), [Barge Freight (St. Louis)](https://feedsoft.ai/c/BARGE.md), [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

By limiting renminbi depreciation, the new fixing lowers the risk of a sudden cheapening of dollar-priced imports from China's perspective, which can otherwise slow Chinese purchases of US and Brazilian grains and meal. The policy shift reduces currency-driven volatility for feed importers.

## Read by commodity

- SOY: neutral
- CORN: neutral
- BARGE: bearish ▼
- USDCNY: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDCNY | 2017-06-01 | 5 | -1.2% | -3.7 | The new fixing mechanism limits depreciation pressure and gives the central bank more control, supporting the yuan. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| CORN | 2018-09-13 | [bilaterals.org \| 'This is life or death for us': Mexico's farm movement rejects new NAFTA agreement](https://feedsoft.ai/events/63002-bilaterals-org-this-is-life-or-death-for-us-mexico-s-farm-movement-rejects-new.md) | +0.3% | +2.0% |
| CORN | 2017-11-29 | [Organic Consumers Statement on Recent Rulings Against Monsanto in Mexico - Organic Consumers](https://feedsoft.ai/events/67970-organic-consumers-statement-on-recent-rulings-against-monsanto-in-mexico.md) | +1.6% | +7.4% |
| CORN | 2022-06-28 | [Argentina limits access to foreign exchange, blue dollar rates rise - DatamarNews](https://feedsoft.ai/events/41228-argentina-limits-access-to-foreign-exchange-blue-dollar-rates-rise-datamarnews.md) | +4.0% | -16.7% |
| CORN | 2018-11-24 | [The struggle of Mexico's native corn against GMOs](https://feedsoft.ai/events/62022-the-struggle-of-mexico-s-native-corn-against-gmos.md) | +1.1% | +8.1% |
| CORN | 2026-08-04 | [New Export Price Mechanism for Agricultural Products](https://feedsoft.ai/events/12806-new-export-price-mechanism-for-agricultural-products.md) | -0.5% | +10.1% |
| SOY | 2024-06-25 | [Ensuring deforestation-free supply chains: The new EU regulation - EFS Consulting](https://feedsoft.ai/events/29775-ensuring-deforestation-free-supply-chains-the-new-eu-regulation-efs-consulting.md) | -1.3% | -4.9% |
| SOY | 2023-01-04 | [The EU’s Game-Changing Law to Fight Global Deforestation \| Earth.Org](https://feedsoft.ai/events/37817-the-eu-s-game-changing-law-to-fight-global-deforestation-earth-org.md) | +1.5% | +2.2% |
| SOY | 2024-01-20 | [China, U.S. restart agricultural cooperation mechanism - CGTN](https://feedsoft.ai/events/14784-china-u-s-restart-agricultural-cooperation-mechanism-cgtn.md) | -0.3% | -3.4% |

## Sources

- swiss.economicblogs.org: https://swiss.economicblogs.org/pictet/2017/luyet-dong-chen-fixing-mechanism-limits-renminbi-depreciation-dollar
- farmprogress.com: https://www.farmprogress.com/marketing/weekly-grain-movement-june-5-2017

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