Why China’s yuan is forecast to keep strengthening against the US dollar
South China Morning PostTuesday, July 1, 2025 at 3:59:59 AM
The Chinese yuan is gaining ground against the US dollar, and experts think this trend will keep going. A mix of China’s surprisingly strong economy and worries about America’s mounting debt is fueling confidence in the yuan. Just this week, China’s central bank set the yuan at its strongest level since last November, and it’s been steadily climbing since June.
Editor’s Note: A stronger yuan isn’t just a number on a screen—it signals shifting economic tides. If China’s currency keeps rising, it could mean cheaper imports for Chinese consumers and businesses, but it might also squeeze exporters who rely on weaker exchange rates. For the US, a softening dollar could make debt repayments trickier while giving China more global financial clout. In short, this isn’t just about exchange rates—it’s about who’s holding the economic reins.
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