China: the yuan at its highest level in three years
The appreciation of the yuan which worries the Chinese Central Bank, especially as the economic recovery in the country is uneven.
REUTERS - Kim Kyung Hoon
Text by: RFI Follow
2 min
The yuan is displayed on Tuesday at its highest level since June 2018. Against the dollar, the yuan's rating reached 6.4051 dollars.
China's economic recovery and growth prospects in its main export markets are pushing the yuan higher.
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The first country affected by the health crisis but also the first to recover, the Chinese economy is currently benefiting from the strong recovery in demand for products manufactured in its factories, in particular from the United States and the European Union.
The Chinese economy relies heavily on its exports.
Thanks to a clear improvement in its sanitary conditions over the past year, China has been able to resume production, while at the same time activity was still at a standstill in other countries.
This rapid recovery is once again attracting investors.
Capital is flowing in, which has the effect of strengthening the value of the yuan, but also of causing an increase in the dollar prices of Chinese goods.
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An appreciation of the yuan which worries the Chinese Central Bank, especially as the economic recovery in the country is uneven.
Many sectors such as tourism and transport are still at a standstill, and household consumption is struggling to pick up.
In the end, too strong a rise in the yuan may slow down the recovery.
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