China’s Exim bank president calls traders to accelerate Yuan sell-off

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China’s Exim bank president calls traders to accelerate Yuan sell-off

On Saturday, the 6th of July 2019, chairman of China’s export and import bank (EXIM Bank), one of the three key institutional lenders of Chinese economy, Hu Xiaolian said urged traders to accelerate conversion of Chinese currencies in to other global currencies, reminding that external risks related to global trade protection would likely to inflict wound to Chinese financial sectors.

Nonetheless, while China’s Export and Import bank Chair had urged traders to rollout a steep sell-off of Chinese Yuan, which would eventually devaluate Yuan and proffer cushion to Chinese exports amid a 25 percent tariff hike by United States, analysts had begun to ask whether China’s latest policy to devaluate Chinese Yuan would intervene into the latest round of trade talk between Washington and Beijing next week, as United States had long been urging China not to meddle with forex market to devalue its currency in order to grapple with additional tariff pressures.

However, cautioning that the financial sector would likely to take heavy hit amid growing external pressure, Xiaolian said, “There have been barriers in terms of trade, investment, inter-firm cooperation, technology exchange and so on.

This makes us really fear that the financial sector, which is fueling the economy and an important supporter of globalization, will be adversely affected”.