China

What does a stronger US dollar-yuan exchange rate mean, and why is Beijing worried?



Why is the US dollar-yuan exchange rate so important?The exchange rate between the Chinese yuan and the US dollar is an indicator of relative economic strength and also has a direct impact on each nation’s economy by affecting the value of imports and exports.In general, a stronger exchange rate makes a country’s exports more expensive, which can reduce demand for them. But a stronger exchange rate makes imports cheaper, potentially increasing demand in the longer run and helping to hold down…



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