The Chinese yuan has been added to the list of the main rivals of the US dollar that may replace it as the leading currency.
In the next six months, the Chinese national currency may outperform the US dollar. Of course, China’s reaction to the pandemic was delayed. The virus was spreading all around the world because local authorities preferred to keep the outbreak in secret. However, the measures taken by the government just after the pandemic announcement led to significant positive results.
Some analysts and investors suppose that China’s disregard of the rights and freedom of its citizens allowed the country to avoid a large-scale crisis. Moreover, obligations and stocks denominated in the yuan rallied amid such actions. Joe Biden’s victory became a new driver of the jump. As a result, the Chinese yuan advanced against the greenback. Since the beginning of June, the yuan soared by 8.4% to settle at 6.585 yuan against the US dollar.
The coronavirus crisis hit other currencies apart from the dollar. The Brazilian real and the Argentine peso were among the most badly damaged currencies that lost 34% of their value. The second place was given to the Turkish lira that nosedived by 29%. The Russian ruble is the third in the list with a slump of 23%.
