Dark Mode
Friday, 29 March 2024
ePaper   
Logo
Chinese currency hits record lows against US dollar

Chinese currency hits record lows against US dollar

Business Desk

China's currency, the yuan, has hit fresh record lows against the surging US dollar, according to BBC News.

The yuan has fallen below 7.2 to the dollar for the first time since a separate system for trading the currency outside mainland China was launched more than a decade ago, said the Wall Street Journal.

China's domestic currency also reached its weakest point since the 2008 global financial crisis, the BBC reported.

It comes as the dollar continues to rise in value against other major currencies after the US central bank raised interest rates again earlier this month.

The fall in the currency's value can actually be helpful for exporters within China because it would make their goods cheaper and so could increase demand, Joseph Capurso, head of international and sustainable economics at the Commonwealth Bank of Australia told the BBC.

That said, exports only make up 20 per cent of the Chinese economy these days, so a weak yuan will not turn around fundamental weakness domestically largely caused by Beijing's zero-Covid strategy and a property crisis, he said.

A weaker currency can also lead to investors pulling their money out of the country and uncertainty in financial markets.

Comment / Reply From

Vote / Poll

ফিলিস্তিনের গাজায় ইসরায়েলি বাহিনীর নির্বিচার হামলা বন্ধ করতে জাতিসংঘসহ আন্তর্জাতিক সম্প্রদায়ের উদ্যোগ যথেষ্ট বলে মনে করেন কি?

View Results
হ্যাঁ
0%
না
0%
মন্তব্য নেই
0%

Archive

Please select a date!