China's yuan surges to record-high versus major peers amid Ukraine crisis, Yuan at the precipice to becoming an alternative Global Reserve Currency

[beijingwalker]

not really, there's no real alternative to Chinese manufacturing which is why inflation is being exported. Chinese manufacturers can raise prices and there's nothing anyone can do about it. that's why you see 7-10% official inflation in the US.

This was exactly what happened after US imposed high tariffs on the Chinese goods and started the trade war

China Is Paying Less Than 8 Percent of Tariff Costs. Americans Are Paying the Rest

China Is Paying Less Than 8 Percent of Tariff Costs. Americans Are Paying the Rest.

Former President Donald Trump and his top trade advisers spent years arguing that tariffs applied to imports from China were not being paid by

reason.com

 

[FairAndUnbiased]

Precisely, you cannot replace made in China in a single day for even a weeks. The importer need to bite the bullet and bear with the higher cost.

Most people don't even know what China has.

Even sunken F-35 was retrieved by a Chinese built ship. Just for a small taste of how everyone depends on China.

Going after Russia has raised prices on energy by 5x and counting, along with some definite consequences for food and chemicals... going after China is an economic impossibility.

 

[beijingwalker]

Going after Russia has raised prices on energy by 5x and counting, along with some definite consequences for food and chemicals... going after China is an economic impossibility.

Won't stop fools from trying

 

[MH.Yang]

I highlighted concerns of Chinese traders - they are worried.

Check following links for explanation.

China rushes to pull back the yuan from a three-year high

As the U.S. dollar weakens, Chinese authorities are pushing back against yuan strength and trying to keep it in a weaker range.

www.cnbc.com

What does a stronger US dollar-yuan exchange rate mean?

The exchange rate between China’s yuan and the US dollar has become a closely watched issue as a lower yuan exchange rate figure means it takes fewer yuan to purchase one US dollar, indicating a stronger Chinese currency.

www.scmp.com

The effect of Trump's tariff war has told us that CNY can be allowed to appreciate appropriately. Of course, the appreciation process must be stable and controllable, now this rate of appreciation is not in China's interests.
However, in history, the currencies of all countries that avoided the middle-income trap will appreciate for a long time. This is the law of economic development, and we can't completely avoid it.
I think the Chinese govt's appreciation threshold for CNY in 2022 is no more than 6.000. Once the exchange rate exceeds 6.000, I think the Chinese govt will intervene.

 

[beijingwalker]

I think the Chinese govt's appreciation threshold for CNY in 2022 is no more than 6.000. Once the exchange rate exceeds 6.000, I think the Chinese govt will intervene.

Yes, 6 is the ceiling, can not go beyond it otherwise China's exports can be adversely impacted.

 

[Han Patriot]

I highlighted concerns of Chinese traders - they are worried.

Check following links for explanation.

China rushes to pull back the yuan from a three-year high

As the U.S. dollar weakens, Chinese authorities are pushing back against yuan strength and trying to keep it in a weaker range.

www.cnbc.com

What does a stronger US dollar-yuan exchange rate mean?

The exchange rate between China’s yuan and the US dollar has become a closely watched issue as a lower yuan exchange rate figure means it takes fewer yuan to purchase one US dollar, indicating a stronger Chinese currency.

www.scmp.com

When President Xi told us that this is once in a 100 years change, we didn't understood him. Now I understand, we must grab our destiny.

 

[MH.Yang]

When President Xi told us that this is once in a 100 years change, we didn't understood him. Now I understand, we must grab our destiny.

In Chinese langue, danger=危机. It has two words. 危 means danger and 机 means opportunity.
The Chinese believe that danger and opportunity coexist. Danger contains opportunity, and opportunity also contains danger.

 

[beijingwalker]

USD/CNY to move downward to 6.10 by end-2023 – Westpac​

3/11/2022 8:09:56 AM GMT

China’s renminbi has outperformed recently, USD/RMB having fallen from 6.37 at the end of January to 6.32 now. Economists at Westpac forecast the pair at 6.10 by end-2023.

“We see further gains in the period ahead, forecasting USD/RMB to fall to 6.10 by end-2023 (-3.5%).”

“The momentum evident in China’s economy at the turn of the year and its plans for enduring economic development signal upside risks for the renminbi versus the US dollar, although it has to be recognised for the near term that we are nearing historic lows for the currency pair which may prove a tough technical level to break.”

USD/CNY to move downward to 6.10 by end-2023 – Westpac

China’s renminbi has outperformed recently, USD/RMB having fallen from 6.37 at the end of January to 6.32 now. Economists at Westpac forecast the pair

www.fxstreet.com