Forex trading has been largely affected as the United States and China trade war had slowed down the economies involved and also had a global impact as the economic slowdown started during the trade war between these nations. Apart from economic and trade deficits, there have been huge deficits in the forex markets too.
China has recorded a huge slump in its growth rates and this has been due to the reduced exports of the nation and the capital withdrawal of the investors as the United States and China trade war causing major deficits to the operations of the major firms so they had to pull the plug on china for investments and production. As the popularity of the nation decreased in the world with trade war going on the forex trade of the nation was also declining and causing major deficit numbers to be registered. Chinese commercial banks continued to see net foreign exchange sales last month but the volume has narrowed from that in August causing disruption in the growth further than it was expected to, data from the country's forex regulator showed Friday. Chinese lenders bought 162.5 billion U.S. dollars’ worth of foreign currencies and sold 165.9 billion dollars worth last month, resulting in net sales of 3.4 billion dollars which is a narrow down from the deficit of August, the State Administration of Foreign Exchange (SAFE) said in a statement.
The fate of forex can get better if the trade tensions are relieved as the trade talks are changing the scene
Tags : Forex trading, trade deficits, China trade war, billion dollars, State Administration of Foreign Exchange,