Daily Management Review

Chinese yuan falls to two-year low on weak statistics from China


On Friday, the CNY dropped to a two-year low versus the US dollar, and is expected to close with the biggest drop since May this week.

Mussi Katz
Mussi Katz
The Q2 GDP figures, which came in far below expectations and placed doubt on China's economy's capacity to meet its growth target, was the cause of the decrease.

Due to quarantine measures that had a detrimental effect on industrial production and consumer spending, China's GDP shrank dramatically in Q2 compared to Q1 and its annual growth slowed significantly.

Although the June numbers show some signs of improvement, economists do not anticipate a rapid recovery as long as Chinese authorities continue to have a zero-tolerance stance toward COVID and as long as global economic development slows.

source: nasdaq.com