Currency Volatility Is a Headache for Companies Reducing Reliance on China

Moving supply chains means handling more volatile FX: Investec. Virus hit accentuated trend spurred by U.S-China tariff wars. Executives looking to cut their reliance on China as tensions with the U.S. ramp up have a new nemesis to fight: currency volatility. Unlike most nations, the world’s second-largest economy has the relatively tame yuan, with the People’s Bank of China setting a reference rate every day. The currency’s offshore and onshore rates aren’t identical, but they often move in tandem.