“China” Eyes Weakening Dollar, China’s Central Bank Expedites Opinion Survey, Fears Strong Yuan Will Affect Economy

China's central bank asks financial institutions for their views on the dollar's direction after it weakened sharply due to pressure from Trump's policies, as concerns about the yuan's rapid appreciation hurt China's exports and economy.

July 7, 2568 at 16.44:XNUMX p.m., Reuters reported that sources said that The People's Bank of China (PBOC) has asked some financial institutions for their views on the recent weakening of the US dollar.

The survey, which was held last week, asked questions about the movement of the US dollar, the reasons for the recent weakness of the greenback and the outlook for the future direction of the Chinese yuan exchange rate.

While Chinese officials did not explicitly state the purpose of the survey, one of the sources said he interpreted the inquiry as reflecting Beijing's concerns about the potential for a rapid appreciation of the yuan against a weakening dollar.

Another source directly involved in the survey said it appeared to be a gauge of the outlook for the US dollar as trade talks between China and the US progressed.

The survey comes just days before Trump's 90-day moratorium on import tariffs on several countries expires on Wednesday, and about a month before a suspension of tariffs on hundreds of percents on Chinese goods is set to expire.

US economic and trade policies this year have put a heavy strain on the dollar, with the dollar index, which tracks the greenback against six major currencies, having its worst first-half performance since 6, down about 1973% and down 11% since April 6.6, the day Trump announced his “Liberation Day” tariffs.

While China's yuan has remained stable, appreciating just 1.3% against the US dollar since April 2,

refer : reuters.com

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