In a sign of how far confidence in China’s currency has fallen, 7-Eleven stores in Hong Kong are valuing the Chinese currency at par with the city’s dollar.
Just three years ago, one yuan fetched 1.28 Hong Kong dollars on the foreign currency market. While China’s currency would need to fall at least 12 percent to reach actual parity with the Hong Kong dollar, the exchange rate offered by the city’s largest operator of convenience stores shows how depreciation pressures are making the yuan less attractive to hold.
