Yuan's prospects based on economic growth.

In recent decades, China's economy has been developing rapidly; in fact, it is one of the most dynamic economies in the world.
True, since 2011 there has been a slowdown in economic development; the global crisis has reached the Middle Kingdom.

Not to say that braking is critical, but still compared to other years - in 2010-10.4%, 2011-9.4%, 2012-7.8%, 2013-7.7%, 2014-7.4 , 2016-6.7%, as you can see the trend is obvious.

Analysts' forecasts for 2017 have so far been fully confirmed; according to preliminary data, China's economic growth this year will be around 6.2-6.5%.

There are many reasons for this decline, the most significant being the decline in the export of Chinese goods to foreign markets.

How does the slowdown in economic development affect the exchange rate of the Chinese currency? If you look at the chart of the currency pair, you will notice that in 2017 there is a downward trend for the USD/JPY currency pair, despite the decline in economic growth, the Japanese yen is becoming more expensive against the US dollar. Over the past 3 months the growth has been more than 3%.


Why is the yuan rising?

It turns out that it is not the yuan that is growing, but the dollar that is falling relative to other currencies. For example, the euro exchange rate against the yuan is only strengthening and over three months the euro has risen in price relative to the yuan by more than 4%.

That is, the yuan is falling, but not as rapidly as the dollar; the reduction in exports is still reflected in the exchange rate of the national currency.

At this stage, investments in the yuan, as well as in shares of Chinese enterprises, are losing their attractiveness.