2016 Resulted In Largest Annual Decline In History For Yuan
It is evident this situation will not improve anytime soon. President Trump's harsh language towards their Chinese trading partners causes a lot of unrest. Hardly anyone will be surprised to find out 2016 was not a good year for the Chinese Yuan. Further analysis shows the currency saw its largest annual decline ever in that year. Moreover, the number of capital outflow avenues had been increasing at an alarming pace. Despite best efforts by the PBOC and government, money is still existing the Chinese economy at a fast pace. The Institute of International Finance released a new report....
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China has tried to depreciate the yuan in a controlled manner, but, increasingly, this is becoming more and more difficult to maintain. Investors and businessmen, knowing this, have placed bearish bets on the yuan or converted yuans into dollars, which hastens the decline of the second largest economy’s currency. China has pushed a weaker yuan since it entered into the International Monetary Fund’s group of reserve currencies in early October. The yuan’s decline increased when Donald Trump won the U.S. presidential election. That victory hastened the US dollar’s year of gains.....
Bitcoin outperformed all currencies on 2016, increasing from US$433 at the beginning of the year to $794 year-to-date. Recording an annual gain of 54%, the price of bitcoin is expected to pass $800 shortly. While bitcoin solidified a strong performance this year, the majority of leading reserve currencies including the USD, CNY, JPY and GBP stumbled.....
Analysts have warned that China’s capital outflows are accelerating while the yuan is depreciating sharply. They predict the situation to worsen in 2017. Bitcoin.com asked Spencer Bogart, Equity Research analyst at Needham & Company, how China’s situation could affect bitcoin. Yuan Headed for Biggest Decline in Over 20 Years. Goldman Sachs recently....
Despite efforts by China’s central bank to stabilize the Yuan in the past, they have utterly failed to do so. The value of China’s Yuan has been going down steadily over the past few months. That trend will likely continue, as the currency reached its lowest point since September of 2010. For now, it remains anybody’s guess as to how this scenario will play out long-term, but things are not looking optimistic. At the same time, China continues to be very bullish on Bitcoin, showing the need for alternative financial tools. Almost no day goes by without the Chinese Yuan weakening against....
Twenty million yuan ($3 million) in China’s central bank digital currency will be given away to 100,000 people in the country’s largest test of the digital yuan to date. The digital currency will be accepted at 100,000 stores, including JD.com, one of China’s largest online retailers. $3 Million in Digital Yuan Giveaway The Chinese city of Suzhou, located west of Shanghai, is reportedly gearing up to hand out 20 million yuan in the country’s central bank digital currency (CBDC) to 100,000 residents, according to a statement posted Friday by the Suzhou municipal....