Chinese authorities are reportedly contemplating a devaluation of the yuan as a countermeasure against potential tariffs proposed by former President Donald Trump, who is eyeing the 2024 presidential elections. Sources indicate that policymakers in Beijing are worried about the impact of Trump’s trade policies on the Chinese economy, particularly if he returns to office. The yuan, which has faced pressure this year, may be allowed to weaken further to maintain economic stability. The move comes as recent market analysis shows the dollar holding steady, with expectations building ahead of crucial consumer price index (CPI) data. An unnamed source within the Chinese government stated, ‘If tariffs and trade aggression are going to be a part of the next administration’s strategy, we need to protect our economy in any way possible, including the exchange rate.’ This development poses questions about the effectiveness of yuan devaluation as a tool to mitigate the effects of U.S. trade measures. The Australian dollar remains near a four-month low, reflecting broader market uncertainties as investors weigh the implications of these developments on global trade dynamics.
Chinese Authorities Consider Weaker Yuan Amid Looming Trade Risks from Trump
