Why The Chinese Yuan Is The Most Important Currency Right Now

On Monday, Chinese equity markets were down more than 1% after reports surfaced that China’s Industrial Bank had stopped lending to property/housing-related projects, and the rise in home prices in China showed signs of slowing in January.

As a bit of background, the China bears have long warned that there is a huge real-estate bubble in China that will eventually pop. When it does, they argue, it could take the entire market down with it. That means we would see a repeat of the housing bust that we saw here in the U.S. in 2008. So, any negative China real estate news is usually a short-term negative, and that’s what happened Monday.

Yet while the focus was on housing and lending markets, I think the more important event in China of late is the fact that the Chinese yuan very quietly fell 1.3% vs. the U.S. dollar last week. The yuan also dropped sharply against the greenback on Monday.


About arunha

Successful track record of over 7 years in End 2 End Executive Search Process and Delivery. Over 5 years of experience in Executive Search. Graduated from one of the elite universities of India with Bachelor of Science (Computers) and holds Masters in Computer Science. Her forte is in the field of, acquiring talented Corporate Support & Technology professionals. She is aggressive, dynamic and result-oriented individual, worked on Asia (Malaysia, Singapore, Australia & India), USA and Canada recruitment models. Extremely effective in Developing, Executing, Recruiting, Sourcing Plans and Procedures accomplished in Direct Sourcing, Internet Sourcing, Candidate Closing, On Boarding Candidates and entire Life Cycle Recruitment. She is a resourceful, solution-focused professional with excellent interpersonal and rapport-building skills; has experience working with domestic and global markets. Specialties: Research, Recruitment's, Negotiations, Compensation and Benefits, Head hunter, Technical Recruitment, Executive Search, Human Resources, Resourcing, Talent Management, Talent Acquisition, Talent Mapping, C Level Search
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