Chinese Economics Thread

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Overbom

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Offshore renminbi falls to record low as pressure on PBoC grows​

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The offshore renminbi exchange rate fell to a record low on Wednesday, putting further pressure on China’s central bank to directly intervene to prop up the country’s currency.

The offshore rate fell as much as 0.7 per cent to Rmb7.2281 against the dollar, the lowest on record since Hong Kong clearing banks were first allowed to freely open renminbi accounts in 2010.
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gelgoog

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I do not know what is the big issue with the yuan falling against the dollar. It will make exports even cheaper and the Chinese economy will be more competitive in the international market. Plus it is not like China lacks dollars or other currencies from their exports to buy whatever they need.
 
56860

56860

Senior Member
Registered Member
gelgoog said:
I do not know what is the big issue with the yuan falling against the dollar. It will make exports even cheaper and the Chinese economy will be more competitive in the international market. Plus it is not like China lacks dollars or other currencies from their exports to buy whatever they need.
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It's not. For once the PBOC doesn't have to intentionally depreciate the yuan. Fed rate hikes are doing the job for them. This is good news for Chinese exports and investments. If you are a European company facing energy shortages, there is no better place to shift your manufacturing than China, with its plentiful gas, complete supply chains and favorable currency exchange rates. MSM just doing its job in spinning everything into the next China collapse theory.
 
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