The Yuan devalued over 1% against the US Dollar during early Monday trading, the sharpest drop for the Chinese currency, since the 2008 financial crisis, with one Dollar now worth more than 7 Yuan. According to some observers, this is the result of an increase in trade tensions, following the imposition of new tariffs on 300 billion worth of Chinese imports, by Washington and the subsequent promise by the Chinese authorities to retaliate.
The devaluation will in some way mitigate the effect of the new tariffs over the price American consumers will pay for imported Chinese goods; however, adding a new currency front to the ongoing trade conflict, between the world’s two economic superpowers, is likely to increase tensions even more, potentially hampering the growth of the global economy. It Is therefore reasonable to look at the latest developments as a warning from China, and not as an all-out retaliatory movement.
Photo by Erwan Hesry.
Has undertaken a number of senior roles in his current employer including running the international desk, responsible for managing sales, customer services and marketing functions for a number of territories, as well as acting as a regular public speaker at events and contributor to TV and other media through interviews and market analysis. Since November 2016 he has been the Senior Executive Officer (SEO) of ActivTrades Dubai branch, having overall management responsibility of the branch. Prior to joining ActivTrades Ricardo worked in the IT and Financial industries.
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