# A fireside chat about the renminbi – How far will it fall? | ViewPoint English

> The renminbi fell from 6.36 to 6.78 against the dollar, a drop of about 6.6%, in roughly two weeks between late April and early May. Drivers include large foreign bond outflows, importer and exporter hedging, US dollar strength from Fed tightening, and a weak yen that pushed the PBOC to shift to a weaker cross-rate policy.

- Date: 2022-05-24 · published 2022-05-24T12:00:00.000Z
- Category: macro · region China · magnitude medium
- Page: https://feedsoft.ai/events/9860-a-fireside-chat-about-the-renminbi-how-far-will-it-fall-viewpoint-english
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

The renminbi's depreciation raises the cost of dollar-priced imports for China and shifts the outlook for its feed purchases. Continued weakness keeps USD/CNY elevated and tends to weigh on commodity demand from China.

## Read by commodity

- DXY: bullish ▲
- USDCNY: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDCNY | 2022-05-23 | 5 | -2.0% | -3.5 | It explains the drivers of yuan weakness (bond outflows, hedging, Fed-driven dollar strength, PBOC weaker cross-rate policy), though it describes the late April to early May drop rather than the specific week. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2022-06-10 | [China's renminbi will likely remain weak for the rest of 2022 \| Oxford Economics](https://feedsoft.ai/events/41170-china-s-renminbi-will-likely-remain-weak-for-the-rest-of-2022-oxford-economics.md) | +0.2% | +0.4% |
| USDCNY | 2022-12-05 | [Renminbi movements: it's more than the trade and current account - OMFIF](https://feedsoft.ai/events/6575-renminbi-movements-it-s-more-than-the-trade-and-current-account-omfif.md) | -0.9% | -1.5% |
| USDCNY | 2021-12-09 | [Will the renminbi surprise the market? - BNP Paribas Asset Management UK](https://feedsoft.ai/events/11296-will-the-renminbi-surprise-the-market-bnp-paribas-asset-management-uk.md) | +0.4% | +0.5% |
| USDCNY | 2018-06-29 | [Renminbi Continues to Fall: Central bank sets yuan midpoint fixing against dollar at 6.6166 - CGTN](https://feedsoft.ai/events/64735-renminbi-continues-to-fall-central-bank-sets-yuan-midpoint-fixing-against.md) | +0.2% | +2.8% |
| USDCNY | 2024-05-29 | [Pressure mounts on Beijing to allow renminbi to weaken - The Pound Hub](https://feedsoft.ai/events/30494-pressure-mounts-on-beijing-to-allow-renminbi-to-weaken-the-pound-hub.md) | -0.1% | +0.3% |
| DXY | 2022-02-23 | [The market has adjusted its views of how the Federal Reserve will raise interest rates](https://feedsoft.ai/events/42642-the-market-has-adjusted-its-views-of-how-the-federal-reserve-will-raise.md) | +1.0% | +1.2% |
| DXY | 2022-09-19 | [Peru \| At the pace of the FED: will it be different this time? \| BBVA Research](https://feedsoft.ai/events/39869-peru-at-the-pace-of-the-fed-will-it-be-different-this-time-bbva-research.md) | +1.9% | +2.2% |
| DXY | 2016-12-22 | [Euro-Dollar Parity: It’s All About the Greenback](https://feedsoft.ai/events/73662-euro-dollar-parity-it-s-all-about-the-greenback.md) | +0.1% | -1.3% |

## Sources

- viewpoint.bnpparibas-am.com: https://viewpoint.bnpparibas-am.com/a-fireside-chat-about-the-renminbi-how-far-will-it-fall/

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