China will tolerate weaker Yuan
China’s major financial institution is about to let the national currency edge down to 6.8 per greenback this year in order to support the Chinese economy. In other words, the Yuan will most likely catch up with last year’s record dip of 4.5%.
Currently, China’s currency is trading at its lowest level for up to five years, so the major bank is going to ensure a gradual slump for fear of triggering the sort of capital outflows, shocking the national economy earlier this year and some criticism from key trading partners, including the USA.
Donald Trump, presumptive American Republican Presidential nominee already has China in his sights, telling on Wednesday that he would direct his treasury secretary in order to label China a currency manipulator in case of a successful election in November.
Last August’s surprise devaluation of the Yuan sent global markets into another round of worries as for the world's number two economy was in worst shape ever, considering massive capital outflows as investors looked for safe havens overseas.