# China’s yuan depreciation complicates trade outlook, leaves manufacturers ‘nervous and passive’ | South China Morning Post

> The yuan closed at 6.7863 per dollar after touching a 19-month low of 6.8110, moving toward the key 7 level. Producers face higher costs for overseas materials and fewer orders from Europe and the US, as capital outflows persist amid slowing growth and COVID controls.

- Date: 2022-05-13 · published 2022-05-13T12:00:00.000Z
- Category: macro · region China · magnitude medium
- Page: https://feedsoft.ai/events/9857-china-s-yuan-depreciation-complicates-trade-outlook-leaves-manufacturers
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Higher import costs for raw materials paired with weaker export orders pressure Chinese manufacturers' purchasing power for feed ingredients. A continued yuan slide keeps USD/CNY elevated, which tends to weigh on China's import demand.

## Read by commodity

- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| 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 | 2022-05-05 | [US Fed rate hike: how can China stem capital outflow and prop up the yuan? \| South China Morning Post](https://feedsoft.ai/events/8315-us-fed-rate-hike-how-can-china-stem-capital-outflow-and-prop-up-the-yuan-south.md) | +1.7% | +0.8% |
| USDCNY | 2018-06-29 | [Offshore yuan drops faster than onshore currency as trade war fears, central bank policies spook international investors \| South China Morning Post](https://feedsoft.ai/events/64732-offshore-yuan-drops-faster-than-onshore-currency-as-trade-war-fears-central.md) | +0.2% | +2.8% |
| USDCNY | 2016-10-09 | [Flash crash of pound piles pressure on already weak yuan \| South China Morning Post](https://feedsoft.ai/events/5891-flash-crash-of-pound-piles-pressure-on-already-weak-yuan-south-china-morning.md) | +1.0% | +1.6% |
| USDCNY | 2017-02-26 | [China's yuan falls, but fears of US trade war may cap depreciation - The Business Times](https://feedsoft.ai/events/72719-china-s-yuan-falls-but-fears-of-us-trade-war-may-cap-depreciation-the-business.md) | +0.5% | +0.2% |

## Sources

- scmp.com: https://www.scmp.com/economy/economic-indicators/article/3177686/chinas-yuan-depreciation-complicates-trade-outlook

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