Part 5/10:
As of today, the yuan has fallen to 7.272 to the dollar, nearing lows not seen since July this year. Notably, this decline comes at a time when the Chinese government has attempted to intervene by fixing stronger midpoints for the yuan. However, these efforts appear ineffective as the market continues to disregard government interventions.
Broader Economic Implications
The currency drop reflects significant global challenges alongside China’s woes. Countries like India, Brazil, and South Korea are not just faltering due to domestic issues but are also feeling the repercussions of China’s deteriorating economic landscape. Investors are beginning to prepare for more policy changes as economic targets slip further out of reach.