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China unlikely to defend falling yuan, despite US trade deal pressure, analysts say
China is unlikely to take forceful measures to defend a decline in the yuan’s exchange rate in response to the novel coronavirus, in the hope that that the US will refrain from labelling Beijing a currency manipulator, analysts said. The US-China phase one trade deal, the terms of which are slated to take effect no later than February 14, included commitments by China not to engage in competitive currency devaluation. In return, the US Treasury removed the “currency manipulator” label it had imposed on China last August. But analysts said that Beijing may now be tempted to allow the yuan’s exchange rate to ... (full story)