look news india
New Delhi: China’s currency has reached the lowest level of the last 17 years against the yuan dollar. On the one hand, the world markets are constantly falling due to Trump’s tariff war. After this, the central bank of China decided to devalue the yuan against the dollar. Tell you have to take it.
China’s devaluation will greatly benefit China, as the yuan will become cheaper and the importer will be attracted to Chinese goods. But analysts believe that there is a possibility that foreign investors will be eager to withdraw their capital from China, not the stability of the Chinese currency.
On Wednesday, Donald Trump gave 90 days exemption to all countries except China. On the other hand, import duty (tariff) on import of Chinese goods has been increased by 125 percent. Angered by this, China has imposed another additional tariff in addition to 50 percent tariff on the import of American goods, causing the total tariff to 84 percent. Thus, when the world’s two most powerful economic powers clashed, the global economy began to instability. On the other hand, analysts clearly believe that signs of recession are also appearing. China is committed to retaliate in a decisive and strong manner against the American American tariff.
Chinese Foreign Ministry spokesman Lynn Gian said that China would take firm and strong steps to protect its valid rights and interests and would not tolerate anything that weakens China’s sovereignty, security and development.
Lee accused Washington of using tariffs as a weapon to suppress the trade. He described this action as an attempt to take the game of chess and power to the peak.
Along with this, Lynn also said that until an agreement is reached, the US dollar and Chinese yuan will remain in the center of the FX Market.
It is clear that weak yuan will make Chinese export cheaper. On the other hand, even if there is an increase in exports, the weak yen will reduce foreign capital investment. There is also a fear of increasing financial instability due to attracting foreign capital.
According to Reuters, in this context, the central bank of Chinese has ordered the country’s banks, especially government banks, to ban the purchase of dollars.
This morning, the onshore Yuan (Yuan in the country) declined by 7.3518 points per dollar. Which reached its lowest level in 26 years since December 2007. People’s Bank of China (Central Bank of China) placed the midbids on 7.2092 on Thursday afternoon. This was the lowest rate in 11 years since September 2023, but Reuters estimates that it would fall to 7.3484 per dollar. In short, China’s financial position is unstable.