The yuan exchange rate against the dollar weakened to its lowest level in four months – Kommersant
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The Chinese yuan weakened 0.6% against the US currency to 7.26 yuan per dollar. This is the lowest level since November 2023. Earlier, the People’s Bank of China (PBOC) reported opportunities for easing monetary policy.
Deputy Governor of the NBK Xuan Changneng said the day before that opportunities for reducing the reserve ratio for banks remain. In addition, according to him, the NBK intends to launch a new on-lending mechanism to support the IT sector and the digital economy.
Newspaper Financial Times notes that Beijing is wary of easing monetary policy due to the risk of capital outflow. At the same time, the reduction in interest rates in the United States, as announced by the country’s authorities on March 20, partially reduces this risk, the publication adds.
The yuan/dollar exchange rate in the second half of 2023 fell to its lowest level since 2007. Reuters wrote that the weakening of the currency occurred against the backdrop of a decline in trade turnover and weakening consumer spending.
About the Chinese economy – in the text of Kommersant “China is no longer in a hurry”.
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