What does a stronger US dollar-yuan exchange rate mean, and why is Beijing worried? | South China Morning Post

Why is the US dollar-yuan exchange rate so important? The exchange rate between the Chinese yuan and the US dollar is an indicator of relative economic strength and also has a direct impact on each nation's economy by affecting the value of imports and exports. In general, a stronger exchange rate makes a country's exports more expensive, which can reduce demand for them. But a stronger exchange rate makes imports cheaper, potentially increasing demand in the longer run and helping to hold down domestic inflation in the near term. So a weaker yuan against the US dollar would generally make…