Chinese Businesses Hoard US Dollars Fearing the Yuan Could Weaken
President Xi Jinping is trying to counter the US dollar on the global stage by pushing the Chinese Yuan ahead for cross-border transactions. Jinping wants the Chinese Yuan to dominate the global trade sector and push the US dollar second in line. While that’s the agenda of the President, multinational corporations in China are not buying into the idea. Also Read: U.S. Oil and Gas Production Shatters Records in 2024 Leading businesses in China are not convinced with the ideology, as they fear incurring losses. The Yuan has already shed 1.9% of its value against the US dollar in 2024 alone. The Chinese Yuan is dipping against the US dollar and is now at a 5-month low. Estimates forecast it could fall further making the currency enter dangerous waters. Therefore, keeping more Yuan and less of dollars will severely impact businesses leading to losses or even job cuts. Also Read: When Will Gold...