Chinese Media Downplays Yuan’s Drop Due to Manipulator Label
Chinese state media supported the government’s move on yuan’s weakening, saying it was normal. The press stressed on economic benefits that come with a flexible currency.
According to Xinhua News Agency’s Monday report, the yuan falling beyond 7 a dollar is a result of a market drive. The move shows the exchange rate is now more flexible. The report also said it’s normal to have market sentiments fluctuate amid rising external risks.
People’s Daily said the yuan’s future is unpredictable. It said the central bank is now more tolerant of fluctuations compared to during the 2016 depression cycle. The newspaper also published an article on one of its WeChat accounts. It said that markets play a more significant role in the yuan’s exchange rate.
On Monday, yuan’s weakening to its lowest level in more than ten years. It caused Trump administration to label China – a currency manipulator worsening the U.S-China trade war. The move is symbolic but highlights the deteriorating trade relationship between the two giant economies.
On Tuesday, the yuan pared losses in Hong Kong after China’s central bank fixed daily rate stronger than 7 per dollar. On Monday, Yi Gang the People’s Bank of China governor said China wouldn’t use yuan as a tool to deal in trade disputes.
According to a Chinese Security journal’s commentary, the domestic financial media also eased investor’s nerves to say PBOC was still keen on it bottom-line-mindset. Policymakers were considering a range of risks in managing exchange rates.
The journal also emphasized that there was no need to worry about yuan steep depreciation or shocks to asset prices amid capital outflow. It said that there was no basis for the yuan to weaken significantly.
China’s yuan stabilizes, investor sentiment remains delicate
According to Xinhua News Agency’s Monday report, the yuan falling beyond 7 a dollar is a result of a market drive. The move shows the exchange rate is now more flexible. The report also said it’s normal to have market sentiments fluctuate amid rising external risks.
People’s Daily said the yuan’s future is unpredictable. It said the central bank is now more tolerant of fluctuations compared to during the 2016 depression cycle. The newspaper also published an article on one of its WeChat accounts. It said that markets play a more significant role in the yuan’s exchange rate.
On Monday, yuan’s weakening to its lowest level in more than ten years. It caused Trump administration to label China – a currency manipulator worsening the U.S-China trade war. The move is symbolic but highlights the deteriorating trade relationship between the two giant economies.
On Tuesday, the yuan pared losses in Hong Kong after China’s central bank fixed daily rate stronger than 7 per dollar. On Monday, Yi Gang the People’s Bank of China governor said China wouldn’t use yuan as a tool to deal in trade disputes.
According to a Chinese Security journal’s commentary, the domestic financial media also eased investor’s nerves to say PBOC was still keen on it bottom-line-mindset. Policymakers were considering a range of risks in managing exchange rates.
The journal also emphasized that there was no need to worry about yuan steep depreciation or shocks to asset prices amid capital outflow. It said that there was no basis for the yuan to weaken significantly.
China’s yuan stabilizes, investor sentiment remains delicate
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