Bankers hawk hedging as trade war hits yuan

Volatile: The yuan has fallen about 11% against the dollar since Washington announced its first hefty tariffs on Chinese imports 17 months ago. — AP

SHANGHAI: In a Shanghai room packed with small businesses ranging from furniture makers to garment exporters, Zhu Yuan, a currency expert at Bank of Communications, explains why Chinese companies need to build their defences against currency volatility.

“Currency swings are now largely at the mercy of geopolitics and Sino-US relations. The yuan’s value is getting nearly impossible to predict, ” he told members of the city’s chamber of commerce.