Forex Market News Today
  • Home
  • News
  • LiveHourly
  • Markets
  • Stock
  • Business
  • Economy
  • World
  • Politics
  • Energy
  • exchange
  • companies
No Result
View All Result
Forex Market News Today
Home Economy

China’s Stronger Currency Could Be a Fig Leaf for Biden

2 months ago
in Economy
3 min read
China’s Stronger Currency Could Be a Fig Leaf for Biden
Share on FacebookShare on Twitter


HONG KONG — China’s economy has come roaring back from the depths of the coronavirus pandemic, and its currency has joined the ride.

The currency, known variously as the yuan or the renminbi, has surged in strength in recent months against the American dollar and other major currencies. Through Monday, the U.S. dollar was worth 6.47 renminbi, compared with 7.16 renminbi in late May and close to its strongest level in two and half years.

Many currencies tend to jump around in value even more, but Beijing has long kept a leash on China’s, so the renminbi’s leap looks like a power move.

The stronger renminbi has implications for companies that make stuff in China, which is a pretty big group. It could make Chinese-made goods more expensive for the world’s consumers, though the effect seems muted so far.

The most immediate impact might be in Washington, where President-elect Joseph R. Biden Jr. is set to move into the White House next week. During past administrations, a weakening of China’s currency led to anger in Washington. The renminbi’s rise may not ease the tense relationship between the two countries, but it could remove one potential issue from Mr. Biden’s plate.

Why Is the Renminbi Strengthening?

The reason is simple: China is a rare bright spot in an otherwise ravaged global economy.

The coronavirus has been tamed within China’s borders, at least for now. The nation’s factories are charging ahead full steam. The world’s shoppers — many of them stuck at home or unable to buy plane or cruise ship tickets — are buying all the Chinese-made computers, televisions, selfie ring lights, swivel chairs, gardening tools and other accouterment of nesting that they can. China’s share of world exports rose to a record 14.3 percent in September, according to data compiled by Jefferies & Company.

Investors are also keen to stash their money in China, or at least in investments tied to the renminbi. With the economy stronger, China’s central bank has room to leave interest rates higher than in Europe and the United States, where central bankers are keeping rates historically low to shore up growth.

The renminbi looks particularly strong against the dollar right now because the U.S. currency has weakened. Investors are betting that the world economy will recover this year, so many are beginning to shift their money out of dollar-denominated safe havens, like U.S. Treasury bonds, and into riskier bets.

All of that has sent money flooding into China, which tends to bolster a country’s currency.

What Is Beijing Doing About It?

Not much, at least for now.

Updated 

Jan. 12, 2021, 4:10 p.m. ET

The Chinese government has long kept a firm hand on the value of its currency, in part by limiting how much of it can move past the country’s borders. With those tools, China’s leaders for years kept the renminbi weak against the dollar, even when the Chinese currency should have been strengthening. A weak renminbi helps China’s…



Go to the news source: China’s Stronger Currency Could Be a Fig Leaf for Biden

Tags: BidenChinasCurrencyFigLeafstronger
Previous Post

Tesla, General Motors, Wells Fargo and more

Next Post

5 Best iOS Forex Trading Apps of 2020

Related Posts

Live Foreign Currency Exchange Rates
Economy

Food scarcity fears prompt plan to ease post-Brexit checks on EU imports | Brexi…

by Forex News
March 6, 2021
0

Ministers are preparing to relax post-Brexit plans for border checks on food and other imports from the European Union...

Read more
F.A.Q. on Stimulus, Unemployment and Tax Rebates
Economy

F.A.Q. on Stimulus, Unemployment and Tax Rebates

by Forex News
March 6, 2021
0

Here’s what you need to know:Stimulus ChecksThe stimulus payments would be $1,400 for most recipients. Those who are eligible...

Read more
To Juice the Economy, Biden Bets on the Poor
Economy

To Juice the Economy, Biden Bets on the Poor

by Forex News
March 6, 2021
0

But unlike Mr. Biden, Mr. Trump pursued a top-down approach to reinvigorating economic and wage growth. He cut taxes...

Read more
Unemployed Kansan owes more than $11K in benefits after getting overpayment lett…
Economy

Unemployed man owes more than $11K in benefits after getting overpayment letter

by Forex News
March 6, 2021
0

TOPEKA, Kan. (KSNT) – A Kansas man is seeking help after receiving a letter that says he owes thousands...

Read more
What the future holds for Exxon
Economy

What the future holds for Exxon

by Forex News
March 6, 2021
0

Photo by: John Nacion/STAR MAX/IPx 2020 10/20/20 A view of an Exxon logo on a worker's baseball cap at...

Read more
Unemployed Kansan owes more than $11K in benefits after getting overpayment lett…
Economy

Unemployed Kansan owes more than $11K in benefits back after getting overpayment…

by Forex News
March 6, 2021
0

TOPEKA, Kan. — A Kansas man is seeking help after receiving a letter that says he owes thousands of...

Read more
Rising seas: A failure of economics to cut greenhouse emissions | Counting the C…
Economy

Rising seas: A failure of economics to cut greenhouse emissions | Counting the C…

by Forex News
March 6, 2021
0

Rising seas: A failure of economics to cut greenhouse emissions | Counting the Cost Al Jazeera English Go...

Read more
Senate extends unemployment benefit in bill
Economy

Senate extends unemployment benefit in bill

by Forex News
March 6, 2021
0

The Senate amended President Joe Biden’s $1.9 trillion stimulus bill to include a $300 weekly federal unemployment benefit through August. Senate...

Read more
Biden Presses Economic Aid Plan, Rejecting Inflation Fears
Economy

Biden Presses Economic Aid Plan, Rejecting Inflation Fears

by Forex News
March 6, 2021
0

As investors look for a pickup in growth and slightly faster price increases, watchers of the Federal Reserve have...

Read more
Unemployed Kansan owes more than $11K in benefits after getting overpayment lett…
Economy

Unemployed Kansan owes more than $11K in benefits after getting overpayment lett…

by Forex News
March 6, 2021
0

TOPEKA, Kan. (KSNT) – A Kansas man is seeking help after receiving a letter that says he owes thousands...

Read more
Next Post
5 Best iOS Forex Trading Apps of 2020

5 Best iOS Forex Trading Apps of 2020

Subscribe
Login
Notify of
guest
guest
0 Comments
Inline Feedbacks
View all comments

Latest Forex News

Dow Jones Futures: Stock Market Rally Extended As Apple, AMD, Tesla Lead Earning…

Dow Jones Futures: Stock Market Rally Extended As Apple, AMD, Tesla Lead Earning…

1 month ago
Sensex hits new high, Nifty above 14,500 for first time; Bajaj twins, RIL top ga…

Sensex hits new high, Nifty above 14,500 for first time; Bajaj twins, RIL top ga…

2 months ago
Progressives ramp up calls for increased unemployment insurance, direct payments

Progressives ramp up calls for increased unemployment insurance, direct payments

3 months ago
How Do Virus Variants Get Their Names?

How Do Virus Variants Get Their Names?

4 days ago

Today Market News

Live Foreign Currency Exchange Rates
Economy

Food scarcity fears prompt plan to ease post-Brexit checks on EU imports | Brexi…

March 6, 2021
Myanmar coup: India asked to return police officers who crossed border – BBC New…
World

Myanmar coup: India asked to return police officers who crossed border – BBC New…

March 6, 2021
Demand Dips For Bitcoin Are Temporary; But Lack Of Supply Is Permanent
Live

Bitcoin has been declared ‘dead’ 402 times since its inception. Here’s how you c…

March 6, 2021
F.A.Q. on Stimulus, Unemployment and Tax Rebates
Economy

F.A.Q. on Stimulus, Unemployment and Tax Rebates

March 6, 2021
To Juice the Economy, Biden Bets on the Poor
Economy

To Juice the Economy, Biden Bets on the Poor

March 6, 2021
Sensex jumps 617 points to end at record high, Nifty at 15,115; auto stocks lead
Live

Sensex jumps 617 points to end at record high, Nifty at 15,115; auto stocks lead

March 6, 2021
  • Contact Us
  • Terms of Use
  • Privacy Policy
  • DMCA
  • CCPA

© 2020 Siteofforex.com

No Result
View All Result
  • Home
  • News
  • Live
  • Markets
  • Stock
  • Business
  • Economy
  • World
  • Politics
  • Energy
  • exchange
  • companies

© 2020 Siteofforex.com

wpDiscuz