⚡Crypto Alert : Altcoins are up 28% in just last month! Unlock gains and start trading now - Click Here

China’s Top Regulator Not Too Worried About Trade War Impact on Economy

The China Banking and Insurance Regulatory Commission (CBIRC) does not expect market conditions and economic fundamentals to depreciate its currency in the long term. Although current trade tensions are causing fluctuations in the Chinese Yuan’s value, spokesman for CBIRC Xiao Yuanqi feels that traders who short the yuan are set to experience heavy losses in the future.

According to reports on Reuters, PBOC could make use of forex intervention and monetary policy tools to prevent USD/CNH from crossing the 7.00 level. If the central bank steps in, it could allay investor concerns about the Chinese economy and boost market confidence in the Chinese Yuan.

Even though the US-China trade war remains ongoing, Xiao remarked that the impact of further tariff hikes by the US on Chinese economy would be “very limited”. He stated, “China is in the middle of a ‘consumption upgrade’, so a huge market with rapid expansion will absorb a large amount of them without ‘crowding out’ existing consumers.”

At the time of writing, USD/CNH continues to trade mostly unchanged at around 6.91.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
ABOUT THE AUTHOR See More
Avatar
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
Related Articles
🔒 OPEN A TRADING ACCOUNT