 |
| Global companies and banks are raising record amounts of yuan. (Source: CNBC) |
Data from the China Foreign Exchange Trading Center showed that on November 24, the central rate of the CNY to the USD was at 7.1151 - the highest since June 10. Recorded this morning (November 29), the central rate of the CNY to the USD continued to increase, at 7.1473.
Experts in Hong Kong (China) said this is a positive sign for the world's second largest economy.
The rise in the exchange rate of the country's domestic currency will improve expectations and restore market confidence, said Sheng Songcheng, former director of the Bureau of Survey and Statistics of the People's Bank of China.
The former official emphasized: "The recovery of the yuan exchange rate is a sign that the Chinese economy has bottomed out and is starting to recover."
Meanwhile, Associate Professor Liu Chunsheng at the Institute of International Economics and Trade at the Central University of Finance and Economics in China said that the appreciation of the yuan was due to a number of factors such as the US Federal Reserve (Fed) signaling a pause in raising interest rates at its meeting in early November, causing the USD index to fall.
In parallel, the Northeast Asian country's third-quarter 2023 economic data exceeded expectations and a series of economic indicators in October improved significantly; positive signals after the meeting between Chinese and US leaders in San Francisco contributed to the currency's rise.
According to international media, global companies and banks are mobilizing record amounts of yuan , pushing the Chinese currency to surpass the euro to become the world's second largest trade financing currency.
In addition, the proportion of RMB in foreign exchange transactions has also been increasing. According to a 2022 survey by the Bank for International Settlements (BIS), the proportion of foreign exchange transactions in RMB in the global market has increased from 4.3% to 7% in the past 3 years.
Source
Comment (0)