The onshore Chinese currency renminbi, or the yuan, strengthened to below 7.10 against the U.S. dollar in August.
In August, the weighted average rate on new corporate loans registered around 3.6 percent, a decline of over 0.2 percentage points from an already relatively low benchmark in 2023.
This indicates that China has continued to lower the overall financing costs and is encouraging financial institutions to pass on profits to the real economy.
The RMB exchange rate has seen an appreciation. The U.S. dollar index, which measures the greenback against six major peers, has retreated from its peak since August, decreasing from above 104 to below 101, marking a new low in over a year with a decline of about 3 percent.
The onshore RMB exchange rate against the U.S. dollar has strengthened from a high point of 7.27 yuan in mid-July to below 7.10 yuan, a cumulative appreciation of 2 percent.
Cross-border funds continued to flow into the Chinese domestic market, maintaining a net increase trend. In August, overseas investors increased their net holdings of domestic bonds by approximately 17 billion U.S. dollars, marking the 12th consecutive month of net inflows.
Onshore Chinese yuan strengthens against USD in Aug
Amid widespread opposition, U.S. President Donald Trump on Wednesday signed two executive orders on the so-called "reciprocal tariffs," imposing a 10-percent "minimum baseline tariff" and higher rates on certain trading partners.
Trump announced these tariffs in a speech in the White House Rose Garden, during which he also said a 25-percent tariff on cars and car parts imported into the U.S. will take effect on Thursday.
Many trading partners of the U.S. have previously expressed their opposition, saying that they will take countermeasures in response.
On Wednesday, President of the European Council Antonio Costa said the European Union must react in a "firm but smart manner" to the reciprocal tariffs.
"This is truly a major economic mistake for the United States and also for Europe and the entire world," Costa said.
Italian Prime Minister Giorgia Meloni said the introduction of new U.S. tariffs would have heavy repercussions for Italian producers, adding that she did not rule out "adequate responses" to defend Italian products.
While stating that the UK is engaging in constructive talks to reach a broader economic prosperity deal with the U.S., British Prime Minister Keir Starmer also said that the country is prepared for all possible scenarios and will not rule out any possibilities
Trump imposes "reciprocal tariffs" amid widespread opposition
Trump imposes "reciprocal tariffs" amid widespread opposition
