CNY: Export strength underpins currency – Commerzbank

Volkmar Baur highlights exceptionally strong Chinese export data, with February exports up nearly 40% year-on-year and the combined January–February surplus reaching about 6.2% of GDP. He notes that modest CNY appreciation versus the US Dollar and Euro has not impeded export performance, while exports to the EU have surged despite weaker shipments to the United States.

Record surplus despite firmer exchange rate

"This morning's data shows once again that the Chinese export economy is running smoothly."

"Imports also rose, but again at a slightly slower pace than exports, so that the foreign trade surplus increased significantly once more."

"Looking at the last 12 months, the foreign trade surplus now amounts to around 6.2% of China's gross domestic product."

"The figures show that even the slight appreciation of the CNY against the US dollar in the first two months of the year did not harm Chinese exports."

"While exports to the US fell by 11%, China was able to increase its exports to the EU by over 27%."

"A look at the EUR-CNY exchange rate also shows that the CNY appreciated only very slightly against the euro in the first two months."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)