In China’s case, a lower yuan exchange rate figure actually indicates a stronger Chinese currency as it means it takes fewer yuan to purchase one US dollar. Photo: Reuters
In China’s case, a lower yuan exchange rate figure actually indicates a stronger Chinese currency as it means it takes fewer yuan to purchase one US dollar. Photo: Reuters

Explainer |
What does a stronger US dollar-yuan exchange rate mean, and why is Beijing worried?

  • The exchange rate between China’s yuan and the US dollar has become a closely watched issue
  • A lower yuan exchange rate figure means it takes fewer yuan to purchase one US dollar, indicating a stronger Chinese currency

Topic |   Currency war
In China’s case, a lower yuan exchange rate figure actually indicates a stronger Chinese currency as it means it takes fewer yuan to purchase one US dollar. Photo: Reuters
In China’s case, a lower yuan exchange rate figure actually indicates a stronger Chinese currency as it means it takes fewer yuan to purchase one US dollar. Photo: Reuters
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