The yuan draws before the currencies of commercial partners and benefits from the weakness of the dollar

The Chinese Yuan benefits this month from the fall in the value of the dollar, but at the same time it draws a decrease before the currencies of its commercial partners, which increases the competitiveness of Chinese exports in the face of high US rates. According to the “Bloomberg” index, which measures the strength of the Ywan weighed in the trade, the yuan will fall 2.7% in April against the currencies of commercial partners, in the largest monthly fall since 2019. expected that the US economy has incurred a recession due to Trump’s chaotic policy. However, the Yuan recovery has become weaker compared to other currencies such as the euro, which undermines its position before the currencies of Beijing’s commercial companies. The stability of the exchange rate of the dollar against the yuan can be the state of relative stability in the exchange rate of the dollar against the yuan as a desirable situation by Beijing to a certain extent, as the peak of the yuan can sharpen the export at an inappropriate time. Any significant decline in the value of the currency could threaten any trade negotiations with Washington, especially after Trump accused Beijing of manipulating the currency to execute the fees. “We believe that China is flexibly connecting the Yuan, and the Chinese bank of the Chinese people thanks to the weakening of the yuan before the currency basket as an effective and less confused way to manage the effects of customs duties,” said Joe Wang, head of the currency and interest division for the big China region. She added: “This trend can continue because the yuan must continue the poor performance before the currency basket to compensate for the effect of the possible fees.” The dynamics of the trade war indicate the performance of the yuan in the current trade tension round to a change in the dynamics compared to the first trade war, when the dollar rose and the yuan dropped below the main level of 7 Yuans per dollar. The tensions have urged investors to question the position of the dollar as a safe haven currency, while the severity of the oscillation in Chinese shares has decreased, which reduced the pressure of Beijing to stop the exit of the capital. “Our expectations indicated that the strongest pressure on the Yuan would take place in the second quarter,” said Lin Song, chief economist at the Great China region, “It seems that the worst pressure has been going on, despite the problems to argue that it is changing quickly in the light of the situation.” The fears of the durability of the economy of China, the factory activity in China, recorded its largest contraction during March, in the first official concern of the durability of the economy after Trump imposed a comprehensive 145% fee on Chinese products. The market is currently being watched for an extra reduction in monetary policy by Chinese People’s Bank, after officials have promised more support for the economy. Central bank deputy governor Zu Lan this week renewed that the Yuan will remain largely stable, and that the bank will work to avoid an excessive slide. Over the past few weeks, the Chinese People’s Bank has set the reference price of the dollar bay within a narrow series above the level of 7.2, citing the preference of stability. In a poll conducted by “Bloomberg” this month, it revealed that some Chinese exporters, after months of waiting, transferred their income from the dollar to the yuan, based on the expectation that the local currency remains stable around the 7.3 yuan level to the dollar. There are no negotiations between Beijing and Washington soon, but the continued ambiguity of the possibility of a nearby trade agreement between China and the United States will remain in a cautious state. While the US administration has hinted that he was meant to reform the relevant trade relations with Beijing, Trump said on Tuesday that China earned the customs duties it set on it. Tommy Woo, the economist at Commerzbank AG, wrote in a memo: “The fees have reached their maximum levels, and the two parties will later try to reduce the escalation of commercial stress.” He added: “Nevertheless, we do not expect trade negotiations soon, and even if that happens, it will not lead to tangible results quickly,” and added that he expects the Yuan to drop to the level of 7.5 in June. The Yuan scored about 7.26 for the dollar on Wednesday, higher than the lowest level in 19 months at 7.3518, which he touched earlier this month. The dollar’s Bloomberg index prepares itself to record its worst monthly loss since 2022. Jeff NG, head of the total economy strategy in Asia at Sumitomo Mitsui Panking Corp (.Sumitomo Mitsui Banking Corp.): It is state as a basic safe haven. “He added:” It can mean some kind of stability in the dollar-lyan, “and note that the level of 7.3 can remain in May, although the fluctuations can push the price to a series between 7.22 and 7.5.