A truck sprays disinfectant on a street in Xian, in northern Shaanxi province, on December 31, 2021. China’s stringent measures against Covid-19 are having spillover effects, such as disrupting work at Samsung’s plants in Xian and weakening the Thai and South Korean currencies. Photo: AFP
A truck sprays disinfectant on a street in Xian, in northern Shaanxi province, on December 31, 2021. China’s stringent measures against Covid-19 are having spillover effects, such as disrupting work at Samsung’s plants in Xian and weakening the Thai and South Korean currencies. Photo: AFP
Neal Kimberley
Opinion

Opinion

Macroscope by Neal Kimberley

How China’s zero-Covid strategy helps US dollar strength but hurts Asian currencies

  • While Washington is shifting to living with the virus and tightening policy, Beijing is sticking with its approach and seeks monetary policy support to do so
  • This underpins the US dollar’s value versus the yuan at the same time as its spillover effects drive weakness in other Asian currencies

A truck sprays disinfectant on a street in Xian, in northern Shaanxi province, on December 31, 2021. China’s stringent measures against Covid-19 are having spillover effects, such as disrupting work at Samsung’s plants in Xian and weakening the Thai and South Korean currencies. Photo: AFP
A truck sprays disinfectant on a street in Xian, in northern Shaanxi province, on December 31, 2021. China’s stringent measures against Covid-19 are having spillover effects, such as disrupting work at Samsung’s plants in Xian and weakening the Thai and South Korean currencies. Photo: AFP
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