China’s Cabinet Adviser Yao: Yuan appreciation could weaken export competitiveness
|Advisers to China’s Cabinet expressed their view on the exchange rate value and the measures to effectively combat the coronavirus pandemic induced impact on the economy.
Cabinet adviser Kevin Yao said that “yuan appreciation could weaken China's export competitiveness,” adding that the foreign exchange reserves will not rise as fast as before and that the foreign trade will be more balanced.
“China's new dual circulation economic strategy proposed by President Xi Jinping is not a short-term measure to cope,” said Adviser Lin Yifu on Tuesday.
Market reaction
USD/CNY trades on the front foot so far this Tuesday, benefiting from a bit of the jawboning on the Chinese currency.
At the press time, the spot rises 0.19% to 6.8230.
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