Yuan Weakens Amid Reports of China's Plans for 2025 Depreciation
The Chinese yuan slid following a Reuters report suggesting Beijing is considering allowing the currency to weaken to 7.5 per U.S. dollar by 2025. This shift would align with China's long-term economic adjustments as it seeks greater flexibility in its monetary policy.
HOMETECH & BUSINESS
12/11/20241 min read
Analysts at Mizuho stated that while currency weakness seems "inevitable," sharp or uncontrolled declines are unlikely due to Beijing's careful management of financial stability. The potential depreciation reflects broader economic challenges, including balancing export competitiveness and managing capital outflows.
This development underscores China's strategic approach to economic growth amid global uncertainties and domestic fiscal pressures