Yuan exchange rate on April 10: Sharp drop to 17-year record low

Specifically, the CNY exchange rate at Vietcombank decreased by 44 VND for buying and 45 VND for selling, down to 3,458 - 3,569 VND/CNY. At BIDV , the decrease was 30 and 31 VND, respectively, bringing the exchange rate to 3,472 - 3,566 VND/CNY.

The exchange rate decline came as the People's Bank of China (PBOC) continued to devalue the yuan against the USD, responding after the US announced a 125% tariff increase on Chinese goods.

On April 10, the PBOC set the reference rate at 7.2092 CNY/USD, the lowest since September 2023, marking the sixth consecutive decline.

Still, the new reference rate was higher than market expectations, suggesting Beijing is trying to maintain currency stability as trade tensions with the US escalate.

On April 9, US President Donald Trump temporarily suspended high tariffs on other trading partners, but with China alone, the tax rate skyrocketed to 125%.

The yuan is under pressure as investors worry that new tariffs will hurt China’s economy . The onshore rate closed at 7.3498 CNY/USD – the lowest since 2007. Onshore, the yuan fell to a record low of 7.4288 CNY/USD.

To limit the decline, the PBOC has asked state-owned banks to sell dollars to support the yuan. A weaker yuan makes Chinese exports cheaper, but a rapid decline could destabilize financial markets and cause capital to flee the Chinese market.

Even if the yuan falls to 8 CNY/USD, this will not be enough to offset the damage from the tariffs, according to Capital Economics analysis. They forecast that China's GDP could fall by 1-1.5% and Beijing may have to launch additional fiscal support policies.

In the coming time, experts predict that the yuan will continue to face downward pressure. However, Beijing is likely to let the currency fall gradually rather than devaluing it suddenly to avoid causing financial turmoil. Ms. Kaanhari Singh of Barclays commented that China will choose a gradual adjustment option rather than a market shock.

In addition, the weakening of the yuan also depends on how the US imposes tariffs on other countries. If other countries successfully negotiate tariff reductions while China fails to achieve this, the pressure on the yuan will be even greater.

Some experts fear that if China were to devalue sharply by 10–15%, it could trigger a wave of competitive devaluations globally, which could send the world economy into a full-blown currency crisis.

However, the PBOC is still adjusting within control limits. The measures to devalue the domestic currency are being implemented moderately to support exports amid escalating trade tensions, but not to the extent of a full-blown devaluation.

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Source: https://baonghean.vn/ty-gia-nhan-dan-te-ngay-10-4-giam-manh-xuong-muc-thap-ky-luc-17-nam-10294824.html