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Yuan strength reflects dollar weakness as much as China’s economic recovery

Beijing needs to be vigilant on the currency front. The strength of the yuan in recent months partly reflects China’s impressive economic recovery from Covid-19 but the rise of the renminbi is not all about China. It’s also about the currency market’s wider and well-grounded disillusionment with the US dollar. China’s own economic situation undoubtedly justifies some degree of yuan appreciation. But Beijing must also be mindful that when a rising renminbi is more a function of US dollar…

Read the original article at South China Morning Post

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