Economy Totters Yet Chinese Yuan Gained Strength Against Dollar in 2021

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China’s trade surplus is the biggest factor that assisted the Yuan in gaining ground against the U.S. Dollar in 2021. The pandemic, shifting Western consumer demand from services to goods, gave the advantage to China because of their excess supply of goods. This shift could change direction if recovery from the pandemic continues and Westerners venture out for services. Concurrently, Communist leadership appears to be fixating pressure on The People’s Bank of China to loosen reserve requirements to stimulate their economy.