Chinese yuan circulation boosts German economy
A study by the German Economic Institute has revealed that Beijing's continued artificial management of the yuan's exchange rate is costing the German economy approximately 43 billion euros. The report suggests that valuing the yuan at a "fair exchange rate" could boost Germany's gross domestic product (GDP) by up to 0.3% between 2026 and 2028, illustrating the impact of exchange rates on trade between China and Germany. The study further explained that China's intervention to control the yuan's value makes Chinese exports cheaper and increases import costs, leading to a decline in German exports to China and an increase in the trade deficit with China to around 90 billion euros by 2025.
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