🚨🌊 What does the decline of the Chinese yuan mean ..??#China

When the Chinese yuan plummets! Europe should raise the red flags🔥📉

✨ A dangerous scheme is being played by China revealing a significant weakness of the Chinese yuan (CNY) against major European currencies! This decline could bring a strong deflationary wave towards the old continent! 👇

What does the chart show? 📊

The chart shows a sharp decline in the value of the Chinese yuan (CNY) since its peak (assumed at 100 in early 2025).

🇪🇺 Against the euro (EUR): The yuan has already declined

by 10%! (the green line)

🇸🇪 Against the Swedish krona (SEK): The yuan

declined by 14%! (the black line)

Why is this considered a "deflationary tsunami" for Europe? 🤔🌊

The reason: The weakness of the yuan makes Chinese goods and products much cheaper when imported to Europe. 💰⬇️

Potential impact:

Flooding European markets with low-cost Chinese goods.

Increased pressure on European producers to lower their prices to compete. 🏭

It could lead to deflationary pressures (general decline in prices) within Europe, which could harm economic growth and corporate profits.

In summary: 🎯

The decline of the yuan is not just a movement in exchange rates, but an indicator of an upcoming economic challenge that could hit European shores in the form of strong deflationary pressures due to the cheapness of Chinese exports.