April 11, 2025.
China Increases Yuan Reference Rate
The People's Bank of China (PBOC) increased the reference rate of the yuan to 7.2087 CNY/USD for the first time in seven days, reflecting the weakening of the US dollar. However, the yuan closed at 7.3498 CNY/USD in the Chinese market, the lowest level since December 2007. The PBOC is working to stabilize the currency, directing state-owned banks to sell USD to support the yuan, amid concerns about capital outflows from China.
Impact of Yuan Increase on Cryptocurrencies
Sui (SUI): The stability of the yuan could boost investor confidence in China, leading to increased transactions and blockchain applications. If users feel more secure, SUI may benefit from heightened activity on its platform.
Jito (JTO): If the PBOC continues its efforts to stabilize the yuan, financial transactions within the blockchain ecosystem may become more popular. JTO, with its DeFi applications, could see increased demand as users seek alternative financial solutions.
Celestia (TIA): Enhanced financial stability may encourage developers to build applications on the blockchain platform. Celestia, with its scalability and flexibility, could attract more projects due to a more stable investment
Overall, the increase in the yuan's value could signal positive developments for these cryptocurrencies, fostering growth and investment in the blockchain industry.
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