The Chinese Yuan has seen its largest monthly decline since August of 2015, which comes on the heels of the Fed hinting at potential interest-rate increases. Additionally, this decrease was also caused by the PBOC cutting the fixing by 0.45%. Bitcoin, on the other hand, keeps gaining momentum while these woes haunt the financial ecosystem.
Cutting the fixing of the Chinese Yuan by another 0.45% drives it to the weakest level since February of 2011. Financial experts attribute this cutting to the strengthening US Dollar, which is set to an enormous monthly gain. In fact, the US Dollar may see its biggest gain since September of 2014, and higher interest rates may be the result. Downward Yuan Trend Continues
What is an even greater concern is how the fixing becomes more predictable, which indicates market forces are allowed to play more prominent role in setting the daily rate. While some people may argue an anticipated Chinese Yuan value is a positive trend, only time will tell whether this is the case or not.
It is evident the People’s Bank of China has a clear plan for the Chinese Yuan, albeit there is still some confusion as to what is going on exactly. Now that the yuan is hitting its lowest value in a long time, and continues its streak of weekly losses, a lot of investors are on edge.
As a result of this new validation decline for the Chinese Yuan, even more investors will be looking to move their funds out of the market. This is much easier said than done, though, as China employs very strict capital control right now. One potential solution is to convert CNY to Bitcoin, as that is the only form of money that is not bound by these regulations.
Over the past few days, […]
