Europe Questions CNY Undervaluation and Trade Gap – Rabobank
Rabobank reports that European politician Merz has called for dialogue with China on monetary and FX policy, arguing the yuan is 20–30% undervalued and should be allowed to float more.
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Rabobank's Michael Every highlights that European leader Merz has urged China to engage in dialogue over its monetary and foreign-exchange policies. Merz contends that the Chinese yuan (CNY) is undervalued by 20–30% and should be permitted greater exchange-rate flexibility.
The remarks come amid ongoing trade tensions between Europe and China, with the undervaluation claim pointing to a potential source of imbalance. A more freely floating yuan could help narrow the trade gap, according to the European viewpoint.
Source: FXStreet Forex News