China’s yuan slid to the weakest in two years as hawkish Fed signals more rate hikes
CNNAug 29, 2022Aug 29, 2022
While the US Fed has worked diligently to deflate inflation by raising interest rates, Chinese authorities have prioritized fighting recession by trying to cut rates aggressively. The PRC needs to mimic American monetary policies if they want to have any hope of stopping the devaluation of the yuan and bringing back currency stability.
China's approach to this issue shouldn't be simply following the US and European blueprint for navigating financial turbulence. Stabilizing foreign exchange should be the highest priority for the Chinese government. There's too much rampant speculation in the currency market - the PRC rightly needs to protect its COVID-weary economy from unscrupulous gamblers.