Chinese Economics Thread

K

KYli

Brigadier
weig2000 said:
Why is Yuan overvalued?

Let's see, the export has been extraordinarily strong, the growth, though under potential due to COVID etc., has been a lot faster than most other major economies, and the inflation has been much milder than the US and other western economies while interest rate has been higher than those in the US/West. All these don't even consider the political risk of western currencies introduced by their behaviors with respect to Russia, Venezuela, Afghanistan etc. So why do they consider Yuan overvalued?

In fact, I think PBOC intentionally suppresses Yuan lately, for fear of too fast appreciation of Yuan.
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A strong Yuan is not good for dollars hegemony. It is not like a few years ago when Americans were complaining about trade imbalance. At the moment, it is far more important for Americans to protect Dollars supremacy than mere trade deficit that can be deal with more printing press.
 
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