Chinese Yuan falls to its lowest level since 2008
The currency of China sank on Monday to one of its lowest index not observed since 11 years ago
The price of the yuan against the dollar sank on Monday to its lowest level since February 2008, after the resurgence since last Friday of the trade war between China and the United States before the announcement of the imposition of new tariffs between the two countries to Starting next September 1st.
Thus, the exchange of the Chinese currency in the “onshore” markets weakened to 7.1478 yuan per dollar from 7.0928 at the end of last Friday.
So far in August, the yuan depreciated 3.8% with respect to the “greenback” and is on track to record its worst month in relation to the dollar since its change eased in 2005.
“Our opinion was that if the US continued to impose new rounds of tariffs, it would not be inconceivable that the renminbi reached 7.5 or more. This is becoming a reality and could happen quickly if neither party goes back”, said Jason Daw, head of emerging markets strategy at Société Générale.
For some time now, both countries have maintained a dispute regarding the imposition of tariffs for the trade of different items.
K. Tovar
Source: La Vanguardia
