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Yuan Depreciates as Beijing Balances Stability Against US Trade Challenges


Photo by FMT

Summary


  • The People’s Bank of China sets yuan midpoint rate at 7.1991 per US dollar, its lowest in 14 months.

  • Yuan faces sharp depreciation pressure after Donald Trump’s re-election and tariff threats.

  • Economists highlight the need for stronger domestic policies to stabilize China's economy.


 

Beijing on Wednesday set the yuan’s daily reference rate at 7.1991 per US dollar, marking its lowest level in 14 months as external pressures mount. The People’s Bank of China (PBOC) made the adjustment following heightened trade tensions with the re-election of Donald Trump, who has threatened to impose a 60% tariff on all Chinese imports. The change highlights the challenges Beijing faces in balancing exchange rate stability with economic growth.

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