During Donald Trump’s last term as U.S. president (January 2017 – January 2021), the USD/CNY (U.S. Dollar to Chinese Yuan) exchange rate experienced significant fluctuations due to trade tensions, tariffs, and monetary policy changes. Here’s a breakdown of the key movements:
USD/CNY Exchange Rate Trends (2017-2021)
Early 2017:
- The exchange rate was around 6.9 CNY per USD at the start of Trump’s presidency.
- The Chinese yuan was weakening due to concerns over capital outflows.
2018-2019: Trade War Impact
- The U.S.-China trade war escalated, with multiple rounds of tariffs.
- In August 2019, the Chinese yuan depreciated past 7.0 CNY per USD for the first time in over a decade.
- This move was seen as a response to U.S. tariffs, and the U.S. labeled China a currency manipulator.
2020: COVID-19 & Recovery
- The exchange rate peaked around 7.17 CNY per USD in May 2020 during the early COVID-19 crisis.
- As China recovered faster than the U.S., the yuan strengthened.
- By late 2020, the USD/CNY fell below 6.5, its strongest level in over two years.
January 2021 (End of Trump’s Term)
- The exchange rate was around 6.46 CNY per USD, reflecting a strengthening yuan due to China’s economic recovery and expectations of policy shifts under Biden.
Key Factors Influencing USD/CNY During Trump’s Presidency
- Trade war & tariffs: Yuan weakened during tariff escalations.
- Federal Reserve rate cuts (2019-2020): Made the dollar weaker, strengthening the yuan.
- COVID-19 impact: Initially, USD strengthened as a safe haven, but later weakened as China’s economy rebounded.