Chinese currency declining rapidly as economy falters

13-05-2022 Fri 22:27 IST | IANS | International
Chinese currency declining rapidly as economy falters

Hong Kong, May 13 : The Chinese currency is declining rapidly as the world's second-largest economy falters under the weight of Covid restrictions, CNN reported.

Since the start of the year, investors have been moving money out of China, driven by concerns over rising lockdowns in major cities, and Beijing's close ties with Moscow in the wake of Russia's invasion of Ukraine. The links have raised fears that China could be targeted by Western sanctions if it helps Moscow.

The yuan - also known as the renminbi - hit its lowest level since September 2020 early on Friday in the onshore market that Beijing controls as well as the offshore, where it can trade more freely, CNN reported.

The currency recovered later in the day to stand around 6.78 per US dollar. In the past three months, the yuan has lost about 7 per cent of its value against the greenback. In April alone, it posted its biggest monthly drop on record. In the same month, China's foreign exchange reserves fell by the most since late 2016, the report said.

Analysts say a combination of Beijing's Covid restrictions and rate hikes by the US Federal Reserve have made investors wary about keeping their money in China. The country witnessed record outflows from Chinese bonds in February and March.

So far, at least 32 cities in the country remain under lockdown, as President Xi Jinping's government relentlessly pursues its zero Covid policy, which has hit almost every industry and pushed the economy backwards, CNN reported.


More News
Sri Lanka, out of lifesaving drugs, receives consignment from India
16 minutes ago
IPL 2022: Prasidh, McCoy, Buttler power Rajasthan to final with 7-wicket win over Bangalore
19 minutes ago
Deepika shares heartwarming 'Period Story' to raise awareness
7 hours ago
Parliament's Privileges Committee summons Maha officials over arrest of Navneet Rana
7 hours ago
'INS Khanderi' shining example of 'Make in India' capabilities: Rajnath
8 hours ago
After two years, India-Myanmar border trade to resume soon
9 hours ago
Woman stabbed by stalker on busy road in Hyderabad
9 hours ago
Kamal Haasan's production house warns websites against pirating 'Vikram'
10 hours ago
PM's attack on KCR triggers war of words
10 hours ago
Vijay Devarakonda to team up with Indraganti Mohana Krishna for his next
10 hours ago
BJP likely to rope in influencers, filmstars to highlight Modi achievements
10 hours ago
Telanagana Cong chief's remarks on Reddys-Velamas trigger row
11 hours ago
Honour killing in Adilabad district, parents kill daughter for marrying against their will
11 hours ago
KTR wraps up Davos tour, Telangana attracts Rs 4,200 crore investments
11 hours ago
Karate Kalyani complains to police against vulgar prank YouTube videos
12 hours ago
SC Collegium recommends transfer of six high court judges
12 hours ago
Hollywood writer Patton Oswalt all praise for RRR and director Rajamouli
12 hours ago
Udit Narayan shares his experience watching Anuradha Paudwal sing for the first time
12 hours ago
Akshay Kumar-starrer 'Prithviraj' name changed to 'Samrat Prithviraj'
12 hours ago
Akshay Kumar: I have done almost 650 songs in my career, and I don't ever want to retire
12 hours ago