Here are some reasons why China’s currency is sinking

Tracey Samuelson Oct 10, 2018
HTML EMBED:
COPY
An employee counts 100-yuan notes at a bank in Nantong in China's eastern Jiangsu province on July 23, 2018. AFP/Getty Images

Here are some reasons why China’s currency is sinking

Tracey Samuelson Oct 10, 2018
An employee counts 100-yuan notes at a bank in Nantong in China's eastern Jiangsu province on July 23, 2018. AFP/Getty Images
HTML EMBED:
COPY

One U.S. dollar today is worth about 9.92 Chinese yuan. That’s down nearly 10 percent from where it was last spring. That drop has the attention of Treasury Secretary Steven Mnuchin, who said Wednesday he wants to make sure China is not doing “competitive devaluations.” That’s when a country seeks an advantage by making its currency, and therefore its goods, cheaper relative to other countries. But the cheap yuan might have more to do with what’s going on in the United States than it does with China.

Click the audio player above to hear the full story.

As a nonprofit news organization, our future depends on listeners like you who believe in the power of public service journalism.

Your investment in Marketplace helps us remain paywall-free and ensures everyone has access to trustworthy, unbiased news and information, regardless of their ability to pay.

Donate today — in any amount — to become a Marketplace Investor. Now more than ever, your commitment makes a difference.