US labeling China as a currency manipulator signifies #tradewar escalation and directly affects the
ratio between the countries’ currencies, which will further highlight Chinese yuan’s weaknesses and US dollar’s advantages, said CF40 member Chen Yuan. 1/5
When compared to the US dollar, Chinese yuan is obviously at a weak position. #RMB mainly serves its domestic economy, while its internalization journey has just started. 2/5 cf40.org.cn/uploads/201909…
Though having joined the SDR basket, #Chineseyuan still accounts for only a small part in investment and settlements on a global scale. Hence it is unwise to let Chinese yuan move against the US dollar. 3/5
Regarding the global market, the US has long seated itself top of the world, naturally leading to the US dollar’s hegemony. #China should never confront US advantages with its weaknesses and a financial war of a larger scale should be avoided.4/5
The US wants Chinese yuan to rise in order to constrain China’s export. Chinese yuan dropping below 7 to the #USdollar did improve the country’s export in a short term, which is against US interests. The US is probably to take measures in investment and other financial areas. 5/5
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