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As China’s foreign currency deposits pass US$1 trillion, banks face unwanted headache, yuan pressure

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Yahoo!Finance/Karen Yeung/7-5-2021

“China is also seeing rising capital inflows from other channels, such as foreign direct investment into China’s growing economy, as well as portfolio investment into mainland stocks and bonds. This demand for Chinese assets, in turn, continues to place upwards pressure on the yuan exchange rate, which Beijing is trying to avoid.”

USAGOLD note: A rising yuan creates a buying opportunity in gold which is priced for international trading in dollars. Asians like to buy gold and silver when it’s on the bargain table.

Gold in Chinese yuan
(One year)

line chart showing the price of gold in yuan one year through 7-7-2021

Chart courtesy of TradingView.com • • • Click to enlarge

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