Chinese Yuan reaches its lowest value since 2008
The Asian currency was set at 7.0883 per dollar from September 1st, when the new tariffs imposed by the United States entered into force
The People’s Bank of China (BPC) set at 7.0883 yuan the midpoint of the dollar exchange rate reference band, the lowest since March 13, 2008, after the entry into force on Sunday of the new US tariffs on imports from China, as well as countermeasures imposed by Beijing.
Thus, the benchmark set by the People’s Bank of China stood this week just four points above 7.0879 yuan per dollar of the midpoint for the daily swing range of 2% of the exchange rate for Chinese currency last Friday.
The exchange of the yuan against the dollar registered in August its biggest monthly decline of the last 25 years before the resurgence of trade disputes between the two largest economies in the world.
In this way, the Chinese currency depreciated last month around 4% against the dollar, its biggest drop compared to the “green bill” since China unified in 1994 the official exchange rate and market.
Im early August, the US Administration made the decision to designate China as a “currency handler,” after the People’s Bank of China allowed the yuan to fall to the 2008 before the dollar, something that had not happened since 1994.
K. Tovar
Source: dpa
