Chinese Yuan Hitting Fresh Record Low Despite the Country’s Effort to Boost Recovery
Ups and downs of the exchange rate always gets on people’s nerves. But this time, in addition to the risk of bottoming out indicated by the decline in the exchange rate, the real depreciation of the effective exchange rate of the RMB is even more worrying than before. The leading factor in this round of depreciation in May and June was the domestic economic situation. Since the second quarter, with the weakening of various macroeconomic data, some research institutions have even lowered their forecasts for China’s annual economic growth.
A scholar said in an interview with a reporter from Caijing that the current macro-economy has encountered multiple problems. In addition, there are factors such as the economic and spiritual impact of the three-year long pandemic on enterprises and families, as well as the geopolitical conflicts. In the face of fluctuations in the RMB exchange rate, the People’s Bank of China has repeatedly released signals to maintain stability.
