US dollar reaches 16-year high against Chinese Yuan

By Al Mayadeen English
Source: Agencies
7 Sep 2023 18:39

The US dollar has appreciated in relation to the Chinese yuan: with 1 dollar amounting to 7.3285.

U.S. dollar and Chinese yuan notes during an interview in Seoul, South Korea, on May 3, 2023 (AP)

The US dollar's exchange rate surged past 7.3285 Chinese yuan on Thursday, marking its highest point in nearly 16 years, Sputnik reported citing trading data.

As of 11:06 AM GMT, the dollar continued its upward trajectory, reaching 7.3281 yuan, a significant increase from the previous day's closing rate of 7.316 yuan. Moments before, the Chinese currency experienced a significant setback, hitting a 16-year low when the exchange rate briefly touched 7.3288 yuan for one US dollar.

The rapid appreciation of the US dollar against the yuan has sent ripples through global financial markets, with analysts suggesting that this shift could have far-reaching implications for international trade.

It was reported back in late August that the euro has experienced an unprecedented decline in its usage for international payments via the SWIFT system. Various media outlets reported a remarkable shift towards the US dollar and the Chinese yuan in global financial transactions.

According to a report from RIA Novosti, the July 2023 statistics indicate a stark decrease in the global share of transactions involving the Euro. The usage of the Euro in international payments plunged to a historic low of 24.4%, marking a substantial decline of 6.83% when compared to the preceding month. Conversely, the percentage of payments conducted in US dollars has seen a notable surge, reaching 46.4%.