China Construction Bank’s Chiu See Unilateral Yuan Appreciation in 1Q

The video discusses the US dollar's role as a safe haven currency, influenced by Trump's policies and Fed rate hikes. It explores the impact of the US-China trade war on currency values, particularly the Dollar China rally. The video also covers the People's Bank of China's monetary policy, focusing on the yuan's stability and market operations, without cutting traditional rates to support the economy.

What factors have contributed to the US dollar becoming a safe haven currency?

• Trump's policies and Federal Reserve rate hikes

• Trump's policies and Federal Reserve rate cuts

• US-China trade deals and Brexit

• Federal Reserve rate cuts and Brexit

What is the expected impact on the US dollar if a US-China trade deal is reached?

• The dollar will remain stable

• The dollar will weaken temporarily

• The dollar will collapse

• The dollar will strengthen significantly

What is the trade war premium in the context of the Dollar-China exchange rate?

• An additional cost on Chinese goods

• A discount on the dollar due to trade tensions

• A decrease in the dollar's value due to trade tensions

• An increase in the dollar's value due to trade tensions

How does the People's Bank of China plan to manage the yuan's flexibility in the first quarter?

• By fixing the yuan's value

• By decreasing the flexibility

• By increasing the flexibility

• By maintaining the current flexibility

Why is the People's Bank of China not cutting the policy rate?

• To weaken the yuan

• To strengthen the yuan

• To increase inflation

• To avoid impacting the real economy negatively