China devalue its currency because the yuan has been rising even when market forces say it should be falling. Worried Chinese have been moving money out of the country, putting downward pressure on the yuan. Yet the yuan has remained up anyway because of its link to the dollar, which has been rising. An overvalued yuan has hurt Chinese exporters by making their products more expensive overseas. In July, Chinese exports plunged 8.3 percent year over year. China's economy already needed help. The economy is expected to grow less than 7 percent this year, its slowest rate since 1990, and could decelerate even more next year. The stock market has been in a freefall since June.
For the most part, China has recently actually wanted its currency to steadily rise, for political reasons and to keep capital from flowing out of China. China’s domestic and international goals align with a stronger yuan. That helps explain why presidential candidates like Trump haven’t been spouting off about China’s currency management as much of late.
A currency devaluation of yuan helps countries sell more exports, boosting the economy and help its own manufacturers .Right now the Chinese economy is in the midst of an economic slowdown and has suffered from stock market turmoil, so it can use some extra help. and Chinese devaluation have affect to other countries such as US exports.
the yuan gets cheaper from the perspective of American consumers, the dollar gets more expensive from the perspective of Chinese consumers. That means it's getting more expensive for Chinese people to import American-made goods, so they're likely to import fewer of them. Lower demand for US goods could mean slightly slower economic growth here in the US.
China devalue its currency because the yuan has been rising even when market forces say it should be falling. Worried Chinese have been moving money out of the country, putting downward pressure on the yuan. Yet the yuan has remained up anyway because of its link to the dollar, which has been rising. An overvalued yuan has hurt Chinese exporters by making their products more expensive overseas. In July, Chinese exports plunged 8.3 percent year over year. China's economy already needed help. The economy is expected to grow less than 7 percent this year, its slowest rate since 1990, and could decelerate even more next year. The stock market has been in a freefall since June.For the most part, China has recently actually wanted its currency to steadily rise, for political reasons and to keep capital from flowing out of China. China’s domestic and international goals align with a stronger yuan. That helps explain why presidential candidates like Trump haven’t been spouting off about China’s currency management as much of late.A currency devaluation of yuan helps countries sell more exports, boosting the economy and help its own manufacturers .Right now the Chinese economy is in the midst of an economic slowdown and has suffered from stock market turmoil, so it can use some extra help. and Chinese devaluation have affect to other countries such as US exports.จากมุมมองของผู้บริโภคอเมริกันจะถูกกว่าหยวน ดอลลาร์ได้รับราคาแพงจากมุมมองของผู้บริโภคจีนมากขึ้น นั่นหมายความว่า มันเริ่มมีราคาแพงมากสำหรับคนจีนการนำเข้าสินค้า อเมริกันทำเพื่อให้มีแนวโน้มการนำเข้าน้อยของพวกเขา ต่ำกว่าความต้องการสินค้าสหรัฐฯ อาจหมายถึง ช้าเล็กน้อยเติบโตทางเศรษฐกิจที่นี่ในสหรัฐอเมริกา
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