CHINA SLOWS THE RISE OF THE RENMINBI BY BUYING MORE US DOLLARS

My friend has often timed stock market trades perfectly because he just needs to watch when the Vietnamese government buys or sells USD

🔸 Major state-owned banks in China have purchased a lot of US dollars this week to slow the rapid appreciation of the renminbi.

🔸 Instead of selling these dollars back as usual, they are keeping them, which tightens dollar liquidity and makes betting on the renminbi's appreciation more difficult and expensive.

🔸 The goal is not to devalue the renminbi but to control the pace of its increase to stabilize the market.

🤜 This means that China is printing money aggressively; aggressive money printing will lead to the renminbi appreciating like Vietnam this year. A cheaper currency means rising asset prices.

🤜 Vietnam will achieve its economic targets by the end of the year, selling foreign exchange to stabilize the exchange rate and reduce stock prices.

🤜 Currently, Europe, the US, China, and most countries are printing money very aggressively.