China’s yuan strengthened to 6.549 against the US dollar on Wednesday, marking the strongest it has been since June 2018.
The currency became a trending topic on Chinese social media Tuesday afternoon, with Weibo users posting under the hashtag #人民币对美元汇率升到6.5时代#.
It’s been quite a rollercoaster for the yuan this year, which was 7.17 against the US dollar on May 27. Since then, it has appreciated in value – much to the dismay of Chinese exporters. “Exporters are suffering and could be ruined by the appreciation of the yuan. China’s economy needs stability, not appreciation,” pleaded Yu Fenghui, an influential Chinese economist via Weibo.
One thread has been repeatedly posted on the Chinese social media site that lays out the basic implication of the yuan’s appreciation in value: “Favorable for imports, unfavorable for exports; conducive to overseas investment, not conducive to attracting foreign capital; good for traveling abroad and studying abroad, but not good for attracting foreign tourists.”
Other users voiced their indifference to the exchange rate, with one woman simply posting, “I just want to see my salary appreciate.”
According to Global Times, the yuan is allowed to increase or decrease by 2% from the currency’s central parity rate, which is based on a weighted average of prices by market makers before the start of the interbank market.
UPDATE (Wednesday, November 18, 2020 4.47pm CST): The title of this article has been modified to reflect that the yuan has strengthened to a two-year high against the US dollar.
[Cover image via @香港文汇报/Weibo]
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