The Chinese Yuan Is Beginning To Depreciate
The yuan, the Chinese currency, has weakened sharply in recent weeks as China’s economy has slowed due to COVID locks and US interest rates have begun to rise.
The yuan reached 6.74 relatively the dollar in Shanghai last Tuesday. The currency has fallen 5 percent since mid-April. Asia Nikkei reports that it is an 18-month low.
The newspaper also revealed that Chinese authorities hope to maintain a stable yuan exchange rate by 2022 and implement prudent monetary policy to prevent financial risk and support economic growth.
China’s export growth fell sharply to 3.9 percent in April. The COVID-19 restrictions imposed in late March in Shanghai’s economic hub and other cities began to affect the economy.