China’s insistence on a strong yuan has come under widespread criticism and pressure, but Beijing is likely to maintain the currency in a tight band for most of the year until it’s internationally recognized, according to one expert.
Some market-watchers have pinned the blame on the country’s policy of keeping the value of the yuan artificially high, thereby making it more expensive for China’s companies to export.
China’s economic growth has been slowing: in early March, Beijing cut its gross domestic product (GDP) growth target to “around 7 percent” for 2015, the lowest level in 11 years, and, ahead of Wednesday’s first-quarter GDP figures, official data on Monday showed China’s exports unexpected plummeted 14.6 percent on-year in March.
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