The currency narratives are now changing with the world order shifting towards embracing a diverse financial system. This system includes the rise of local currencies giving stiff competition to the dollar, and vice versa. At the same time, the aggressive US tariff regime continues to jolt world economies, with the Chinese yuan and US dollar taking maximum hits out of the lot. What’s up with both the currencies lately? Let’s find out.
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CNY Dips To An All-Time Low
The Chinese Yuan has dipped massively due to the recent US tariff regime. President Donald Trump has levied 34% tariffs on China, which pushed the Chinese currency to fall dramatically against the US dollar. In response to this, Beijing is “ready to fight till the end” and has levied counter-tariffs, sparking rising trade war narratives and pushing the currencies further down. The US has once again responded to the current Chinese stance, levying 104% tariffs on China if they don’t agree to the US tariff norms. This has led the investors to withdraw capital outflows in panic, resulting in the yuan losing its value at a rapid speed.
BREAKING: 🇨🇳🇺🇸 China announces additional 84% tariff on US goods. pic.twitter.com/PGujSak11A
— Watcher.Guru (@WatcherGuru) April 9, 2025
Many experts believe that this tariff war may continue for a while, as both nations refuse to bow or surrender to a single unified policy.
“It would be a mistake to think that China will back off and remove tariffs unilaterally. Not only would it make China look weak, but it would also give leverage to the US to ask for more. We’ve now reached an impasse that will likely lead to long-term economic pain.” says Alfredo Montufar-Helu, a senior advisor to the China Center at The Conference Board think tank.
In addition to this, Kevin’ O’Leary, the Shark Tank fame investor, has called for 400% tariffs on China.
“Xi can only stay the Supreme Leader if people are employed. America is the #1 economy on earth with all the cards. We will not have that forever. It’s time to squeeze Chinese heads into the wall.” O’Leary added’.
"Xi can only stay the Supreme Leader if people are employed."
"America is the #1 economy on earth with all the cards. We will not have that forever. It's time to squeeze Chinese heads into the wall."
Kevin O'Leary calls for 400% tariffs on China. pic.twitter.com/8bDrttjsBw— Thomas Hern (@ThomasMHern) April 9, 2025
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US Dollar Is Winning and Losing: A Rare Scenario
The US dollar has been up substantially against the Chinese yuan since 2007, as tariffs continue to push the Chinese economy to encounter increased capital outflows.
JUST IN: 🇺🇸🇨🇳 US Dollar hits highest level against Chinese Yuan since 2007. pic.twitter.com/GHh8hwzQVy
— BRICS News (@BRICSinfo) April 8, 2025
On the other hand, the US dollar has also lost credible strength, as US tariffs are now hinting at possible recession developments, adding more to its woes.
🚨 #BREAKINGNEWS US Dollar is tanking after Trump announces tariffs on multiple countries. At this point he has to be purposely sabotaging the US Economy. 🚨 pic.twitter.com/JKPquKiNa9
— Ford News (@FordJohnathan5) April 2, 2025
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