The fall of currency in China goes from a soft tendency to a more intentional go. Tensions between the United States and China are to blame.
From mid-April, yuan has weakened in relation to the US dollar by 9%. This is the sharpest drop in the exchange rate for a quarter of a century. This week, the situation was interested in Washington and President Donald Trump personally. According to some reports, the Trump administration intends to double the sanction tariffs by another $ 200 billion, raising the rate from 10% to 25%. Experts note that the continuation of work in the selected direction may be regarded as an embargo.
The weakened yuan is no longer able to withstand the US dollar. Previously, the currency fell against other major players: Euro and yen, but today China’s leaders violated their promise to keep the country’s currency basket in a stable position. The People’s Bank (NBK) manages $ 3.1 trillion currency reserves, but its representatives did not solve the use of available resources to stabilize the yuan.
The voltage from China is due to the concerns of the business sector regarding the possibility of strengthening the US pressure on the export of goods. Early attempts by the authorities to stabilize the course did not lead to positive results, amplifying excitement. The problem is that the United States cannot achieve consensus with the authorities of China regarding their share in trade, within the region.
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