Beijing has allowed the Chinese yuan, or renminbi (RMB), exchange rate to weaken, with the offshore yuan falling to 7.4290 per U.S. dollar amid escalating U.S.–China trade tensions.
On April 8, the People’s Bank of China (PBOC) set the yuan’s central parity rate at 7.2038, marking the first time since September 2023 that the rate has surpassed the 7.20 threshold.
The depreciation of the yuan is widely seen as a countermeasure by Beijing to offset the impact of the new U.S. tariff hikes. During U.S. President Donald Trump’s first term, Beijing allowed the yuan to depreciate by more than 10 percent against the dollar in response to tariffs….
Countering US Tariff Hikes, Yuan Exchange Rate Falls Below 7.4
