SHANGHAI — The pace of the Chinese yuan's appreciation has slowed as policymakers signal caution to stabilize the currency. This move comes amid concerns that the yuan’s strength is squeezing exporters’ earnings.
Several Chinese exporters have issued profit warnings linked to foreign exchange losses. These losses reflect a decline in the value of their dollar-denominated assets when converted into yuan in their financial statements.
The central bank’s efforts to steady the yuan highlight the balancing act between currency strength and the profitability of manufacturers reliant on exports.
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