China Weakens Yuan As Coronavirus Pandemic Rages, Companies Can’t Afford to Pay Workers

As economists worldwide are warning that China’s coronavirus-economic slowdown might be contagious, the People’s Bank of China has again manipulated the yuan weaker to give the China’s sick economy a boost of adrenaline.

The PBOC sets the CNY fix 0.27% weaker vs the USD at 7.0012 (markets allowed to trade in a 2% band) & that makes perfect sense as economic growth outweighs all other consideration in the short-term! https://t.co/7bl3QsZpTT

— Trinh Nguyen (@Trinhnomics) February 19, 2020

And so the sector that is supposed to put the floor to growth (consumption, which is more resilient & less volatile than business investment), is well…

You fill in the conclusion.

— Trinh Nguyen (@Trinhnomics) February 19, 2020

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