The Fall of the Renminbi and the Great Panic in China

On April 22, the offshore renminbi fell below 6.5 against the U.S. dollar, a new low since August 23, 2021. The onshore yuan fell below 6.47. On the same day, the State Administration of Foreign Exchange of the Chinese Communist Party held a press conference on foreign exchange receipts and payments in the first quarter of 2022 and released some fake data to stabilize the market.

Migration” has become the most frequently searched word on WeChat since the CCP started a humanitarian disaster lockdown in Shanghai in the name of the epidemic. And Miles Guo mentioned before that many funds have suddenly appeared abroad recently, with large amounts of capital and population shifting. According to some statistics, China’s domestic bond market has recorded the largest outflow of funds in two months. At the same time, foreign investors have sold Chinese stocks in large quantities, so the RMB has hit a new low in the exchange rate. China has also started to impose stricter foreign exchange controls, such as the notice issued by the Industrial and Commercial Bank of China on the suspension of foreign exchange trading.

Xi Jinping has been planning to invade Taiwan recently. As a result, the Chinese domestic stock market siphons off cash to run away. As a result, the domestic economy is in jeopardy. Once Xi Jinping takes action against Taiwan, the domestic and Hong Kong economies will collapse directly, and the renminbi may disappear.