The yuan seems to have halted the plummet it endured against the dollar in 2018, at least for the time being. Photo: Bloomberg
David Brown
Opinion

Opinion

Macroscope by David Brown

China shouldn’t count on currency stability to last. Rather, it should take steps to make the yuan a safe haven

  • While Beijing may breathe easier now than in 2018, global conditions remain uncertain, meaning China should hasten reforms to strengthen the yuan’s position as a reserve currency, to challenge the dominance of the US dollar

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The yuan seems to have halted the plummet it endured against the dollar in 2018, at least for the time being. Photo: Bloomberg
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Given Washington’s preoccupation with the US dollar/yuan exchange rate, realpolitik may dictate that a settlement of the US-China trade war will incorporate some subsequent renminbi appreciation versus the greenback. Photo: Reuters
Neal Kimberley
Opinion

Opinion

Macroscope by Neal Kimberley

Wary of a strong yuan, China has reason to rue yen and euro weakness

  • While the US dollar is expected to weaken against the renminbi, its surprising strength against the euro and yen – the result of the Fed’s dovish turn and US Treasuries’ attractiveness viz-à-viz euro-zone and Japanese government papers – is bad news for Beijing

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Given Washington’s preoccupation with the US dollar/yuan exchange rate, realpolitik may dictate that a settlement of the US-China trade war will incorporate some subsequent renminbi appreciation versus the greenback. Photo: Reuters
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