Jakarta –
Currency Yuan The Chinese renminbi was hit by the United States (US) dollar. The dollar exchange rate continued to strengthen against the yuan renminbi even at the 1 dollar level which is equal to 7.2 yuan.
This is the lowest exchange rate for the Chinese currency since 2008. The yuan continues to weaken its exchange rate, the bamboo country’s currency weakened by 1.9% this week.
The People’s Bank of China (PBOC) also warned that the public should not bet on profits from the movement of the yuan, especially after its rapid decline against the US dollar this week.
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“Do not bet on the appreciation or unilateral depreciation of the Renminbi exchange rate,” the central bank said in a Chinese statement on its website.
The statement came from reading a speech by PBOC deputy governor Liu Guoqiang at a videoconference meeting on foreign exchange that day.
The PBOC also sent out the message that banks should strive to maintain stability in the foreign exchange market. The PBOC statement is believed to be able to slow the pace of the weakening of the Chinese yuan.
China’s central bank has also reportedly taken other steps to support the yuan’s exchange rate this month, including reducing the amount of foreign currency it has to hold.
Previously, the PBOC had eased interest rates to revive economic growth devastated by the Covid-19 blockade. On the other hand, the US central bank, the Federal Reserve, raised the benchmark interest rate to control inflation.
Continued on the next page.
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