Yuan Plunges to 17-Year Low Amid US Tariffs
The yuan’s recent fall to its weakest point since 2007 is directly linked to the escalating US-China trade war. The imposition of substantial new US tariffs on Chinese goods, reaching as high as 104%, has significantly impacted the trade relationship. This has created a ripple effect, putting immense pressure on the Chinese currency.
The Chinese government is actively intervening to manage this decline. Their efforts involve directing banks to reduce their purchases of US dollars and instead sell them, attempting to control the speed of the yuan’s devaluation. This balancing act is crucial, as a weaker yuan offers advantages but also carries significant risks.… Continue reading
Matt Underwood