Helloooo! I was scrolling through the forums, and I found a thread where people were talking about the possibility of China’s Yuan overtaking the USD. But, ever since, not a lot has been said about this. So I wonder if this is because China’s economy has weakened?
On the trading front, USD/CNH is on a slow decline, which means the Yuan has been strengthening against the mighty US dollar for many months. It’s now in a consolidating phase.
However, the real meat lies in researching fundamental analysis - see Australia media news - although with China anything could happen - even a likelyhood war over Taipei, which the USA will become involved.
Hmmm. That’s interesting. I guess I just haven’t heard or seen much about this cause I also don’t follow USDCNH. Thanks for sharing that Steve! Even though it’s strengthening, it really might take a lifetime before CNH overtakes USD.
China’s economy is too huge in order to be weakened by outer reasons. In my opinion, it’s just a consolidation in economy which soon will be restored. Nowadays it’s getting weaker because of coronavirus, issues with supply chains and the crisis of semiconductors production. As we know semiconductors are produced mainly in China, that’s why all of these reasons affect China’s economy. Moreover, the president of the US isn’t going to weaken the conditions which China faced during the previous president, I mean trade war. So, everything will be restored in case of extinction of these reasons.
China’s economy has particularly weakened mainly because it depends on the foreign affairs and international trade. The main power of China’s economy is the export of their services and goods. Coronacrisis hit China severely and it made the economy of China weakening. Of course, nowadays China still remains one of the most strongest eonomie in the world, however there are plenty of issues with supply chain and deliveries because of coronavirus. Moreover, Trump made plenty of efforts to weaken the economy of China. We all remember what happenned in 2016 and this situation with taxes on metals.
I wonder if this has changed though. In this video I came across online, the first prediction is that there’s a possibility that China will lead a 'post-America- world. What do you think about this?
Well, I wouldn’t say that there was some dramatic decline in chinese economy, just some fluctuation which can take place in every economy in the world. Right now, I think that Chinese economy is pretty stable and it may be probably be explained by the political situation in the country. However, nobody knows what will happen in the period of 10 years, RMB is a strong currency but it is not as strong as USD or EUR, so everything may happen.
Hmmm. That makes sense. I guess for now, we just have to wait and see. Thanks for the input!