China Leads the Way with Economic Recovery

China Leads the Way with Economic Recovery

Currencies make the world go round, and the foreign exchange (forex) market is the most heavily traded market in the world. People, businesses and countries can all participate in the forex market, making currencies trading extremely popular because it's also one of the most accessible. Foreign exchange quite simply refers to the exchange of one currency for another, such as buying Euros using US dollars. Currencies are traded in the markets in pairs and this shows their value in relation to others. An example is the US Dollar (USD) and the Euro (EUR) which form the EUR/USD pair, the most commonly-traded in the world. 

Over 2020, the financial markets were a rollercoaster ride for traders as currencies in the forex market leapt up and down to an extreme extent. This was largely due to the fact that many factors influencing an economy will invariably influence currencies as well. For example, interest rate changes, inflation adjustments and government debt, to name a few. With the pandemic driving a number of changes for all of these factors, currencies trading became a wild ride for investors last year. However, one country that stands out for exceptional performance is China, as the Chinese Yuan has