Ms. Zhu, the owner of a Shanghai-based electronic components exporter, said she is setting aside dollars, betting that her management of some $7 million annual inflow of the U.S. currency will prove crucial to the profitability of her company.
“Overall, yuan exchange rate will remain basically stable at reasonable levels,” he added at a March 3. news briefing.The yuan had its worst year in 2022 since China unified market and official exchange rates in 1994, dropping nearly 8% as rising U.S. interest rates diverged from falling Chinese ones, supporting dollar gains.
“Still, the yuan could stabilise somewhat if the upcoming economic data shows continued improvement in the economy.” “Reaction from the regulator has been benign so far, their tolerance of volatility in the yuan has risen quite a lot since last year,” Becky Liu, head of China strategy at Standard Chartered Bank, said.