China’s Quest for a Dominant Currency Faces Challenges

The Chinese yuan is more susceptible now compared to the previous trade conflict.

Xi Jinping's Monetary Ambition

President Xi Jinping is driving efforts to establish the yuan as a robust currency capable of taking a leading role in international commerce. However, the anticipated return of Donald Trump could create significant obstacles to this goal.

Potential Impact of Trump's Return

If Donald Trump assumes the presidency once again, it is expected to exert sustained downward pressure on the yuan over several years due to fears of reigniting trade tensions. Market watchers are speculating that the yuan might hit its weakest point since 2005 against the US dollar by the year 2025, with the most pessimistic forecasts predicting a depreciation of approximately 10%.