Question

How Covid 19 impacted YUAN to EURO .Also find important dates for the pandemic that affected the yuan and analyze the reasons for the fluctuation. (Please cite your sources)

Answer 1

ththYuan (China's Currency) is struggling to get its economy back on track as the COVID-19 outbreak. China's growth and COVID-19 situation are all negative fro the yuan.

The impact of COVID-19 is worst on the economy and the exchange rate as a virus saps the productivity and demand too.

Yuan has eased by 0.6% against the US dollar, the Euro has tumbled by as much as 3.6%.

19th March 2020 onwards, all foreign nations barred from entering China.

On 19th March 2020, National Stabilisation Fund decided that it is essential to intervene in the stock market.

Covid-19 impacted economies all over the world.

Following are the reasons for the fluctuations:

• Demand Shock: As quarantine, travel restrictions, and global disruption have thrown a stick in the spokes of consumer goods & services, tourism, hospitality, and more.
• Supply Shock: as the complex, global supply chains that make the world go 'round are continuously disrupted and halted without a clear resolution point.
• Financial Shock: as lack of cash flow and liquidity threaten to sink enterprises in an economic environment where the global financial safety net is strained and international cooperation is in declined health.