Overview

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9 de sept. de 2025 China’s yuan plunged to a 16-year low against the US dollar due to a poor In the spot market, the onshore yuan opened at 7.310 per dollar, eased to China's low inflation and unemployment rates support a loose monetary Currency markets are reading subtle signals from Chinese authorities as SHANGHAI - The yuan is hovering within striking distance of a 15-year-plus The Chinese yuan has depreciated by 4.8% since the start of the year Sept 28 (Reuters) - China's yuan has weakened more than 5% against the dollar this year and About video:In this video we talk about Chinese Yuan Nearing a 15 Year Low What it Means

Chinese Yuan Nearing a 15-Year Low: What It Means for BRICS

The Chinese yuan is currently hovering within striking distance of a 15-year-plus low against the US dollar, sparking concern and analysis across global markets. The depreciation, with the Chinese yuan depreciating by 4.8% since the start of the year and weakening more than 5% against the dollar this year (Sept 28 Reuters), raises critical questions about its implications, particularly for the BRICS nations.

Understanding the Yuan\'s Decline

Several factors contribute to the yuan\'s current weakness. As reported on 9 de sept. de 2025, China’s yuan plunged to a 16-year low against the US dollar due to a poor [economic performance]. In the spot market, the onshore yuan opened at 7.310 per dollar, easing to [further depreciation]. Contributing factors include China\'s low inflation and unemployment rates support a loose monetary policy, which, while stimulating domestic growth, can put downward pressure on the currency.

Impact on BRICS Economies

The weakening yuan has complex ramifications for the BRICS economies (Brazil, Russia, India, China, and South Africa):

  • Increased Chinese Exports: A weaker yuan makes Chinese goods more competitive globally, potentially increasing exports to BRICS and other nations. This could boost China\'s economic growth but may also create trade imbalances within the BRICS alliance.
  • Competitive Devaluation: Other BRICS nations may feel pressure to devalue their currencies to remain competitive, leading to a potential "race to the bottom" that could destabilize regional economies.
  • Trade Opportunities: For countries with strong trade ties to China, a weaker yuan could present opportunities to import goods and services at a lower cost. However, this depends on the strength of their own currencies.
  • Investment Flows: Currency fluctuations can impact investment flows within the BRICS bloc. Investors may shift capital to countries with stronger currencies or more stable economic prospects. Currency markets are reading subtle signals from Chinese authorities as they try to manage this volatility.

Future Outlook

The long-term impact of the yuan\'s decline on the BRICS nations will depend on how effectively Chinese authorities manage the currency and on the economic responses of other BRICS members. Monitoring the yuan\'s trajectory and understanding its underlying drivers are crucial for businesses and policymakers operating within and interacting with the BRICS economies.

About video: In this video we talk about Chinese Yuan Nearing a 15 Year Low What it Means [for the global economy].

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