The yuan fell to the minimum of the global financial crisis of 2008

On Friday, the Chinese yuan paired with the US dollar collapsed to its lowest level since the global financial crisis of 2008 – the level of 7.2515, despite attempts by state-owned banks to stabilize the market. As you know, the country's state banks sold the dollar on the continental foreign exchange market to prevent a further fall in the yuan.

At the end of the week, the USD/CNY pair strengthened by 0.78%, as the growing dollar continues to push down the currencies of developing countries. In total, the currency pair has grown by 12.3% since the beginning of the year.

Analysts note that the decline of the yuan may continue against the background of the general strengthening of the US currency. Pressure on the yuan is also exerted by a significant difference between the monetary policies of the central banks of both countries: the United States shows no signs of abandoning tough rhetoric regarding rates, while the Chinese authorities are trying to support their economy with the help of soft monetary policy.

It is also worth noting that in an attempt to maintain the stability of its currency during the Communist Party Congress, the Chinese authorities continue to set a higher than expected average yuan exchange rate. Since the opening of the market, the People's Bank of China has set the average dollar-yuan exchange rate at 7.1186 against 7.1188 on Thursday.

Analysts clarify that the high fixing, relative to which the yuan can deviate by no more than 2% up or down, limits the potential for a decline in the Chinese currency. At the average rate on Friday, the range of fluctuations of the USD/CNY pair is 6.9762–7.2610, and today it has already come close to the upper limit of this range.