Beijing has signaled its determination to defend the yuan’s value after it fell to a record low against the US dollar. The People’s Bank of China set the daily fixing rate at 7.2066 per US dollar, despite increasing tariffs by the US due to be implemented later on Wednesday.
The move comes as the US is set to increase its additional tariffs on Chinese imports from 103% to 104%, taking the total duty level to around 115%. This signals China’s resolve to maintain stability in the currency market, rather than weakening it further to benefit exports.
According to Wang, the central bank aims to guide sentiment, reassure markets, and maintain control over the yuan. The goal is not to devalue the currency but to stabilize it amid a trade war.
Source: https://www.scmp.com/economy/china-economy/article/3305751/offshore-yuan-hits-record-low-us-readies-additional-50-tariffs-imports-china