Claims that China is deliberately weakening the offshore yuan are misplaced, according to Mizuho Securities. In a research note said the yuan is neither undervalued nor being artificially cheapened, and that criticism of the currency as “controlled” ignores key evidence.
Noted that the PBOC’s daily guidance has mostly leaned toward appreciation, not depreciation, and that the yuan has actually been stronger relative to Asian peers since the first round of U.S. tariffs in 2018. China’s large trade surplus, he argued, is not the result of a cheap currency, but has persisted despite a relatively firm yuan.
The comments push back against renewed political accusations that China is using the exchange rate to gain unfair trade advantage.
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We note the reference rate for CNY each day and have been tracking its persistent appreciation. I think this note is not really new newws.
