US tariffs rolls pack weaken Yuan, China’s currency and stock markets have been jittery ahead of a deadline for US tariffs on 34 billion dollars’ worth of Chinese goods these tariffs are set to go into effect on Friday.
Chinese currency takes beating ahead of this, the yuan slipped to its lowest level in about 10 months.
China’s central bank chief attributed this to the strength of the US dollar and “external uncertainties.” He is likely to take up fiscal course to prop up the currency.
People’s Bank of China governor Yi Gang said in a statement that “recently, there have been some fluctuations in the foreign exchange market” and that the bank is paying close attention to this.
But he added that “international payments were stable, and cross-border capital flows were roughly balanced”.
Yi’s remarks come at a time when the Chinese currency is under considerable pressure. The yuan weakened past 6.7 to the dollar on Tuesday for the first time since August 2017.