Against the background of trade disputes between China and the US, as well as because of the strengthening of the US dollar, the Chinese currency price shows a steady decline. Quotes approached the psychological level - 7 yuan per US dollar.
However, economists believe that the Chinese central bank will keep the yuan and will not allow the national currency prosest below this level. At the moment, the yuan quotes are at a minimum of the crisis of 2008 and amount to 6.9574 per US dollar, after declining central bank rate by 197 points.
The reason for this decision serves several economic and geopolitical factors. This increase in the US dollar index and Merkel refusal to participate in the next elections for the post of chancellor of Germany and the weakening of oil prices.
Despite the fact that the reduction of prices to the level of RMB 7 is very likely, experts are confident that China's economy is at a high level and that the country would be able to prevent a deeper weakening of the yuan in the near future.
Deputy Head of the Central Bank of China said that they have enough experience to overcome a serious risk of depreciation of the national currency.
According to Reuters said that China has enough foreign exchange reserves, the country can be used to keep the national currency exchange rate, as in the case of further decline in the yuan quotations can not exclude the beginning of large-scale capital outflow.
Andrew Kemp WELTRADE