Start selling off USD - Chinese Central Bank instructs affiliated banks -

Beijing: Start strong buying Chinese Yuan from around the world, selling the USD in the international market. The Central Bank of China has instructed the Chinese banks abroad, along with the domestic government and affiliated banks, should follow this instruction. It is claimed that China has taken this step to protect its currency, which has struggled in the international markets for the past few weeks.

The Chinese economy has been rocked by the ‘Zero Covid Policy’ and faulty economic policies. There were reports of differences between President Xi Jinping and Premier Li Keqiang on this issue. A few days ago, the World Bank predicted that the Chinese economy has slowed down due to the ‘Zero Covid Policy’ and that the Chinese growth rate will be only 2.8% in the current financial year. An earlier World Bank report claimed that the Chinese growth rate would remain at five per cent.

A few days ago, well-known US columnist Doyle McManus pointed out China’s dire problem. Unemployment in China has soared to around 20% and fuel prices have been pushed up by the war in Ukraine, adding to the challenges facing the Chinese economy. In that, McManus had said that the ‘ghost cities’ in China had threatened the economy of this country. This harmed the value of the Chinese Yuan against the USD in the international market. Meanwhile, last month, the US central bank, the Federal Reserve, increased its interest rate by 0.75% to strengthen the USD. This has had an impact on the dollar-based economies of the world. It is claimed that the condition of the Chinese economy, which has been trying to recover for the past few days, has worsened. For the past few days, fresh announcements have been made by the Chinese communist regime to strengthen the yuan. But this has not stopped the fall of the yuan.

In such a situation, the Chinese central bank has suggested selling the USD in its treasury and banks affiliated with the communist regime. It is not certain how many dollars the Chinese Communist regime intends to sell. But it is claimed that dollars in Chinese banks in Hong Kong, New York and London will be sold.

Meanwhile, the election of the ruling Communist Party of China is coming up in the next two weeks. For the past few days, news of internal party rebellion against President Xi Jinping has been coming to light on social media. Under such circumstances, it appears that this is an effort by Xi Jinping to strengthen his grip on the party.