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Yuan Unlikely to Be Devalued: Economists
Mint Mumbai
|April 12, 2025
Economists optimistic that China will use other channels to offset impact
The spiralling economic war between China and the US sparked speculation that Beijing might weaken the Chinese yuan, which could affect other currencies, including the Indian rupee. Earlier this week, People's Bank of China weakened its fixing rate—the centre point of the band in which the yuan or Chinese renminbi is allowed to trade—to just below RMB 7.2 per US dollar. That is the lowest level since September 2023. This set off speculation that China would weaken its currency by up to 30% to counter the US tariffs.
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