Yuan Slides to Weakest Level Against Dollar Since 2007 Amid China's Economic Struggles

Yuan hit its weakest level against the dollar since 2007 amid capital outflow pressures as China's economy struggles.
The yuan has lost 1% this week and depreciated 6.1% this year due to dollar strength and China's slowing economy.
PBOC set a stronger than expected yuan midpoint fix on Friday to support the currency.
Analysts expect further yuan weakness in the near-term but limited as PBOC defends 7.2 level.
Offshore yuan also weakened to an October 2022 low of 7.3621 per dollar on Friday.

reuters.com

Relevant topic timeline:

8/21/2023

China state banks seen mopping up offshore yuan to stem currency weakness

China's major state-owned banks are actively acquiring the offshore yuan as the currency faces increasing pressure from a deteriorating economy and strain in the property sector, effectively raising the cost of shorting the currency and stabilizing its value.

8/30/2023

Chinese economy under threat as yuan weakens

China's currency, the yuan, is at its lowest level against the dollar since the 2008 financial crash, which raises concerns about the country's economic stability and its ability to boost domestic consumption.

9/7/2023

Onshore Yuan Sinks to Weakest Since 2007

The onshore yuan dropped to a 16-year low against the dollar, reflecting growing pessimism towards China's economy and financial markets.

9/14/2023

China Cuts Reserve Requirement to Support Economy Amid Yuan Weakness

China's offshore yuan weakened after the country's central bank announced a cut in banks' reserve requirement ratio, which aims to support the economy but could further worsen the decline of the yuan.

9/14/2023

China's Slowing Growth and Falling Yuan Raise Economic Concerns

China's currency, the yuan, has depreciated over 8% against the dollar as the Chinese economy grows less than expected, making it harder to reach its growth target of 5% for 2023, and worries about the economy have intensified due to issues in the real estate sector and financial health of local governments, causing concerns about the future of the yuan which may experience a slow but steady depreciation in the face of a weak dollar and a desire to maintain a trade surplus.

9/19/2023

China Faces Worst Capital Flight in Years, Weakening Yuan and Economy

China is experiencing a significant outflow of capital, putting pressure on the yuan and raising concerns for authorities as the currency weakens and financial markets become destabilized.

Topics

Posted 9/8/2023, 9:31:00 AM

Yuan Slides to Weakest Level Against Dollar Since 2007 Amid China's Economic Struggles

Yuan hit its weakest level against the dollar since 2007 amid capital outflow pressures as China's economy struggles.
The yuan has lost 1% this week and depreciated 6.1% this year due to dollar strength and China's slowing economy.
PBOC set a stronger than expected yuan midpoint fix on Friday to support the currency.
Analysts expect further yuan weakness in the near-term but limited as PBOC defends 7.2 level.
Offshore yuan also weakened to an October 2022 low of 7.3621 per dollar on Friday.

reuters.com

Relevant topic timeline:

8/21/2023

China state banks seen mopping up offshore yuan to stem currency weakness

8/30/2023

Chinese economy under threat as yuan weakens

9/7/2023

Onshore Yuan Sinks to Weakest Since 2007

The onshore yuan dropped to a 16-year low against the dollar, reflecting growing pessimism towards China's economy and financial markets.

9/14/2023

China Cuts Reserve Requirement to Support Economy Amid Yuan Weakness

9/14/2023

China's Slowing Growth and Falling Yuan Raise Economic Concerns

9/19/2023

China Faces Worst Capital Flight in Years, Weakening Yuan and Economy

China is experiencing a significant outflow of capital, putting pressure on the yuan and raising concerns for authorities as the currency weakens and financial markets become destabilized.