The Chinese yuan has been on a weakening path over the past three months, testing its weak point against the US dollar at 7.3 back in 2022.
This is a result of a sluggish macro recovery in China and widening interest rate differentials with the US, pushing the yuan to 7.18 per dollar. The sluggish growth prompted the People's Bank of China PBOC to cut the reverse repo rate by 10 basis points to 1.9% on June 13.
This was followed by two more cuts on key lending rates on June 19, indicating the beginning of a monetary easing cycle with a stimulus package to...
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