The International Monetary Fund pointed out that China's deflationary pressures and the weakening yuan are amplifying external frictions. IMF Managing Director Georgieva said in Beijing that low inflation has caused the real exchange rate to decline, thereby enhancing export competitiveness and continuing to rely heavily on external demand, which is not conducive to stability under the current trade tensions. This concern is echoed by the business community in the European Union. The EU Chamber of Commerce noted that this year the renminbi has fallen to a ten-year low against the euro, believing this may give Chinese exports a relative advantage, and therefore advocates that the renminbi should have further room for appreciation to ease trade pressure and reduce the potential risk of anti-dumping investigations or tariff risks. Analysts also mentioned that the actual effective exchange rate of the renminbi has declined by about 18% since its peak in 2022.
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Original article: toutiao.com/article/1851185877184649/
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