The renminbi fell to 6.86 against the US dollar, its lowest value in eight years. Depreciation favors Chinese exports. For Trump (and Obama) China is a "currency manipulator". But with a diving Chinese yuan, capital transfers abroad increase.
Hong Kong (AsiaNews) - Today, too, and for the ninth day in a row, the value of the yuan fell reaching the lowest level for eight years now. This morning the value of the renminbi offshore and onshore is below 6.86 against the dollar.
By the victory of Donald Trump in the US, the yuan has fallen more and more. During his election campaign, the newly elected president has often accused China of being a "currency manipulator" and promised to put taxes on Chinese imports up to 45%. Trump accuses China of deliberately devaluing the yuan, to make its export products competitive.
Some analysts point out that even Barack Obama in the past accused China of currency manipulation, but there was no follow-up.
The reason may be that with the devaluation of the yuan, many middle-class or wealthy Chinese are seeking to invest in hard currency or purchase goods abroad, especially in the US.
During the election campaign, Trump promised to invest at least one trillion dollars over the next 10 years in infrastructure, including "motorways, bridges, tunnels, airports, schools and hospitals." This plan would be supported by private investors. And many Chinese are already studying the possibility to participate in such investments. According to many experts, there is an "unprecedented exodus of funds" from China to the US.