05 August, 5.40pm
Trump accused China of currency manipulation after the renminbi depreciated
Trump suspected that China manipulated the currency after the yuan fell to its lowest level in decades. The People's Bank of China has indicated that it does not use the exchange rate to win commercial disputes
Photo: Anthony Kwan / Bloomberg
American leader Donald Trump has accused China of manipulating the currency after the decision of the People's Bank of China to lower the exchange rate to a minimum for a decade.
"China has lowered the price of its currency to almost a historic low. This is called "currency manipulation". Do you hear the Federal Reserve? "- I wrote Trump on Twitter. He added that this is a serious violation that will weaken China considerably over time.
On August 5, during the offer, the yuan fell to its lowest level in a decade. During the offer, the Chinese currency fell 1.3% to 7.0292 yuan per dollar. For the first time since 2008, the Chinese currency has broken the psychologically important mark of 7 yuan per dollar. This happened after the People's Bank of China set the average exchange rate at 6.9225 yuan per dollar.
Head of the People's Bank of China and gang stressedthat Beijing "will not interfere in competitive devaluation and will not use the exchange rate for competitive purposes or as a means to combat external influences such as trade disputes". He explained that the fluctuations are determined by the market and that the exchange rate is at an adequate level. "I'm sure the yuan will continue to be a strong currency," said Yi Gang.