According to the forecast of the largest bank Goldman Sachs, in the next six months, we should expect a weakening of the Chinese national currency.
The ministry believes that the yuan will exceed the psychological mark of 7 yuan for 1 US dollar and reach the bar of 7.1 yuan. The expert believes that such a situation is hardly possible at the end of this year. It is more likely that the weakening of the Chinese national currency will occur in the first half of 2019, Timothy Mo believes.
Earlier, in respect of the Middle Kingdom, there were accusations of currency manipulation. A similar opinion was shared by the administration of Donald Trump. However, the expert is confident that the Chinese authorities do not want such accusations against them, especially on the eve of the meeting between the US President and Chinese President Xi Jinping at the G20 summit.
Chinese leaders have been repeatedly criticized for weakening the yuan. However, experts emphasize that the authorities worked hard to maintain the national currency, which is close to 7 yuan per US dollar. At the same time, Beijing is trying to restrain the outflow of capital, which has intensified with the weakening of the yuan. According to experts, the "weak" national currency provides support to Chinese exporters in connection with the trade conflict between the United States and China.
Earlier, it was reported that in early October of this year, US Treasury Secretary Steven Mnuchin warned the Chinese authorities against the devaluation of the yuan. He proposed to conduct negotiations on this issue.
Recall that since the beginning of 2018, the yuan has fallen in price by 6% against the US currency, reaching a figure of 6.94 yuan for 1 US dollar.
The material has been provided by InstaForex Company - www.instaforex.com