The Central Bank of China lowered the yuan to the dollar to the lowest level since 2008

© RIA Novosti / Alexander Demyanchuka in photobacteria yuan. Archival photoThe Central Bank of China lowered the yuan to the dollar to the lowest level since 2008© RIA Novosti / Alexander Demyanchuka the image Bank

The people’s Bank of China (Central Bank) on Tuesday weakened the yuan to the dollar by 0.28%, which was at least over the last 10 years, according to the regulator.

On Tuesday, the Central Bank set the average exchange rate of 6,9574 yuan per dollar, which is 197 points more than on Monday, when the rate was 6,9377. Fixing Tuesday was the lowest since may 21, 2008.

Amid the ongoing trade war, the Chinese currency has been significantly weakened since the beginning of the year. The Central Bank assured that they will maintain the exchange rate at a rational and stable.

The authorities, including the Premier of the state Council of China Li Keqiang, has repeatedly said that it is not going to turn the yuan in response to the trade dispute.

In August 2015 the people’s Bank of China weakened sharply, the yuan to the dollar (up to 3% — from 6.2 to 6.4), a shock to world stock markets. Later, the Chinese Central Bank focused on the stabilization of the yuan. After this happened three more waves to the weakening of the Chinese currency: in the winter of 2015-2016 (to 6.55), in July 2016 (to 6.67), and the third began in October 2016. After the first wave, the experts claimed that the Chinese Central Bank deliberately devalue the yuan to stimulate exports. The Chinese authorities have denied these allegations.

 

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