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Why Chinas Yuan at 6.80 Is a Policy Choice Not a Crisis
Season 2
Episode 87
Published 2 days, 13 hours ago
Description
Episode 87 of China Economy with Fexingo: Lucas and Luna examine the yuan's surprising stability at 6.80 per dollar through mid-2026 — a flat line while trade tensions simmer and the dollar index drifts lower. They unpack why Beijing is actively managing the currency to preserve export competitiveness, how this affects Chinese stocks (FXI up 0.9%, PDD up 12.6% in a week), and whether the strategy can hold as the trade-weighted dollar remains above 120. The conversation drills into the policy calculus behind the 'managed float,' the role of the daily fixing band, and what a sudden shift would mean for regional supply chains. No alarmism — just a concrete look at how the world's second-largest economy is using currency policy as a buffer.