Irkutsk
Ulan-Ude

Blagoveshchensk
Chita
Yakutsk

Birobidzhan
Vladivostok
Khabarovsk

Magadan
Yuzhno-Sakhalinsk

Anadyr
Petropavlovsk-
Kamchatsky
Moscow

This text is translated into Russian by google automatic human level neural machine.
EastRussia is not responsible for any mistakes in the translated text. Sorry for the inconvinience.
Please refer to the text in Russian as a source.

Chinese currency regulator warns: a wise person will not stand next to a dangerous wall

As the British magazine The Economist notes, the Chinese currency today is at a record high level. And although the Chinese authorities say that such a situation is guaranteed by the coordination of the renminbi against the entire basket of currencies, it is likely that the strengthening of the dollar, which has emerged in the last seven months, is likely to play a major role. .

Some experts believe that such a strengthening does not reflect the real state of China's economy today. As facts, the Central Bank sells part of the foreign exchange reserve in 4 trillion dollars, as well as the withdrawal of 90 billion dollars from the Middle Kingdom economy in the fourth quarter of 2014. Experts believe that the devaluation of the national currency could help to restore lost competitive advantages to Chinese exporters.

Other experts believe that the economic benefits of devaluation are less than other undesirable consequences for the country. So, devaluation will strike a political blow to China. In the long term, such actions will play a negative role in making the yuan the main rival to the dollar. At the same time, a weak yuan will lead to an increase in the cost of servicing foreign debt by Chinese companies that exceed 1 trillion dollars.

In general, the current situation still gives grounds for experts to predict a slight weakening of the Chinese currency. The Central Bank makes statements that, in order to cool the heat of speculators, it will make the exchange rate more unpredictable, giving more power to the market in its definition.

Mr. Guang Tao, the official representative of the currency regulator, this month warned that "A wise man will not stand next to a dangerous wall" - they write Vesti.

April 18: current information on coronavirus in the Far East
Digest of regional events and latest statistics