The Chinese yuan fell to 7.3518 against the dollar on Thursday, marking its lowest level since December 2007, as the central bank continued to lower its daily reference rate for the sixth consecutive session amidst escalating trade tensions between China and the United States.
اضافة اعلان
Chinese tariffs of 84% on U.S. products have now come into effect, covering imports worth $143.5 billion for 2024, which deepens the trade war and raises concerns about a potential global economic recession.
Experts believe that the weakening yuan may enhance the competitiveness of Chinese exports, but it threatens financial stability due to the possibility of increased unwanted capital flows. Sources have reported that the People's Bank of China has asked state-owned banks to reduce their dollar purchases in order to prevent further sharp declines in the currency.
(Agencies)
