China may weaken Yuan amid threat of trade war with United States

The Chinese Government may weaken the Yuan exchange rate to combat threats of a trade war with the United States under the leadership of President-elect Donald Trump, TASS reports

Photo: www.reuters.com

According to Reuters, citing sources, the Chinese authorities may weaken the Yuan in order to increase the competitiveness of national exports and conduct a stimulating monetary policy. These measures will help combat deflation and potential tariff increases from the United States.

The agency’s source also noted that the Chinese Government may reduce the exchange rate by about 3.5 percent to 7.5 Yuan per one US Dollar, and this measure is likely to prevent severe economic shocks.