Chinese yuan weakens against USD

Share with:


Chinese yuan weakens against USD

ANI
20 Jun 2022, 12:55 GMT+10

Beijing [China], June 20 (ANI): The central parity rate of the Chinese currency renminbi, or the yuan, weakened 197 pips to 6.7120 against the US dollar Monday, according to the China Foreign Exchange Trade System.

In China’s spot foreign exchange market, the yuan is allowed to rise or fall by 2 per cent from the central parity rate each trading day.

The central parity rate of the yuan against the U.S. dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day, reported Xinhua.

Meanwhile, foreign investors are dumping yuan and fleeing China post-COVID-19 lockdown and rate cuts which is exacerbating foreign capital outflow.The HK Post reported that investors are exchanging their money from yuan into dollars and driving up the dollar while pushing down the yuan.

Rating agency Barclays similarly downgraded its yuan forecast to 6.9 but said the yuan could hit 7 per cent if the lockdowns and supply chain disruptions continue, reported The HK Post.In March, Hong Kong investors sold off a record USD 24.2 billion worth of yuan-denominated debt.

The exodus from Chinese investments is fuelled by fears over China’s diminishing growth prospects, decreasing bond yield, and higher rates on US investments.

While the United States and other Western nations are raising interest rates to combat inflation, China’s central bank is considering cutting rates to stimulate the economy.

In April, the central bank decreased the reserve requirements from 9 per cent to 8 per cent in a bid to increase the money supply.

Investors had already begun moving money out of China by 2021 because of ongoing COVID lockdowns, supply chain issues, and Chinese President Xi Jinping’s crackdowns on numerous business sectors, including tech and education.

Foreign investors divested USD 6.2 billion of Chinese government bonds in April, marking three straight months of selloffs, the longest sell-off since 2015. (ANI)

Share article:

facebook sharing button Share

twitter sharing button Tweet

reddit sharing button Share

flipboard sharing button Flip

email sharing button Email

When should you hire a lawyer for a car accident?anymuscle.com|

Sponsored

25 Haircuts That Make A Woman Over 60 Look 40Dailyforest|

Sponsored

Living in United States? These Are the Richest and Poorest Countries in Europe 2019EverydayChimp|

Sponsored

Cats Slap Each Other for 4 ReasonsViralBezz|

Sponsored

Arizona: Say Bye to Your Car Insurance if You Live in These Zip CodesDo not pay your next car insurance bill until you read this…Smart Lifestyle Trends|

Sponsored

Take a foot bath with vinegar and a few hours later you will have THIS result!Good to know this|

Sponsored

Unsold 2020 SUVS Now Almost Being Given Away: See PricesAdvocate For Now|

Sponsored

The Future Of Hybrid & Electric SUVs Is Here, See 2022’s Top Models2022 SUV Guide | Search Ads|

Sponsored

Mom Calls Police After Receiving Son’s Camp PhotoPeople Today|

Sponsored

 54 total views

Share with:


Leave a Reply

Your email address will not be published.