USD/CNH week 48

The Chinese Yuan was little moved at 6.57744 against the US Dollar on Tuesday after the onshore rate was set at 6.5809. Investors remained mute as the US General Services Administration said President-elect Joe Biden as the “apparent winner” of the November election, giving him the green light to coordinate with federal agencies ahead of January 20th inauguration. Meantime, APNews reported that Chinese authorities were testing millions of people, imposing lockdowns, and shutting down schools after multiple locally transmitted virus cases were discovered last week in Tianjin, Shanghai, and Manzhouli. Recently, China’s Central Committee said it would “steadily and prudently” promote the internationalization of the Yuan in a communique outlining the country’s next five-year plan for 2021-25. The move indicates Beijing’s growing concern about risks stemming from cross-border capital flows, even as China remains committed to boosting use of the Yuan in international trade and investment.

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