Yuan Devaluation?

China At A Critical Turning Point: Could The Yuan Devalue?

 

For more than five years, until March of this year, Asian currency volatility has been unusually low. We previously suggested that a de facto ‘Asian Euro’ had formed as a pathway that could allow the Chinese Yuan to challenge the US dollar in cross-border markets. Since the Ukraine invasion, at least, the US dollar has been weaponized. A stronger US dollar has heaped pressure on the Yuan, forcing China to tighten policy at a time when her economy is reeling from C-19 lockdowns. This could end badly with a Chinese recession and/or Yuan devaluation.

 

 

See our latest published research, Global View China At A Critical Turning Point: Could The Yuan Devalue? - June 2022

 

 

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