China is still manipulating its national currency. A prolonged artificial weakening of the yuan has already brought the currency to its 5-month low against the US dollar. Such a decision was made by the Chinese authorities amid a large number of foreign and domestic negative factors, including the coronavirus pandemic and economic conflict with the US. Some economists suppose that China may continue a gradual lowering of the yuan. If Donald Trump’s administration increases the sanctions pressure, the Chinese national currency could slump. At the moment, it is trading at 7.1778 yuan for one US dollar and approaching the 11-year low logged in September.
Experts at CEBM Group, China's largest independent investment research firm, are almost sure that the yuan may drop even deeper to hit the level of 7.20 for one US dollar if the US takes strong actions against Beijing in response to Hong Kong's new national security law. Danny Suvanaphumi, an analyst at Goldman Sachs, supposes that the yuan will slide to 7.25 for one US dollar as early as at the beginning of this autumn.
