Major investment banks and research firms project offshore yuan to weaken to an average 7.51 per dollar through the end of 2025, the weakest level on record.
Chinese authorities are contending with a weakening yuan as global investment banks forecast the currency to hit record lows, in anticipation of U.S. president-elect Donald Trump following through with his tariff threats.
Major investment banks and research firms project offshore yuan to weaken to an average 7.51 per dollar through the end of 2025, according to CNBC’s calculation of forecasts from 13 institutions.
That would mark the currency’s weakest level on record, according to LSEG data going back to 2004.
Trump on Monday said he would impose an additional 10% tariff on all Chinese goods coming into the U.S., according to a post on his social media platform Truth Social. Trump had already pledged 60% or higher tariffs on Chinese goods during his election campaign.
«U.S. tariffs would, other things equal, lead to an appreciation of the dollar . currencies of economies with close trade links to the U.S. would see the largest currency adjustments», said Jonas Goltermann, deputy chief markets economist at Capital Economics.
The yuan would need to move to a level of 8.42 against the dollar to fully factor in 60% tariffs on all Chinese goods, according to the projection of Mitul Kotecha, Barclays’ head of FX & EM macro strategy of Asia.
The offshore yuan has lost over 2% since the U.
