Monitoring Desk: Chinese Yuan has touched its lowest point on Tuesday as Chinese currency sank past 6.97 to the dollar on Tuesday morning trading in Asia, reports CNN Business.
“Last time Chinese yuan went to lowest level in May 2008 and this time reasons is China-USA trade war”, commented experts.
China which is investing heavily around the world through its Belt and Road Initiative, facing financial turbulence since US President Trump waged trade war against China.
“The currency has now slumped more than 9% against the greenback since January, dragged down by interest rate hikes in the United States, fears over the health of China’s economy and the trade war between the two countries”, reported CNN.
It may be mentioned that the Chinese government on Friday October 26 issued a warning to speculators betting against the yuan.
“The central bank “is likely to intervene to keep the pace of depreciation gradual,” the Capital Economics analysts said. But they predicted the yuan would slip past 7 to the dollar soon, a level not seen since May 2008″, reported CNN News.
Trembling Chinese economy can hamper economies of African, Central Asia and mostly Pakistan as ambitions projects are being planned or run in these regions. Moreover, Pakistan is eyeing a financial bailout from China to manage its downward economic trends.
