The global financial crisis has been rough on the world economy, to say the least. China, constantly teetering on a trade war with the United States, has experienced some notable financial setbacks, the latest of which being a substantial devaluing of its currency.
When the Asian market opened on October 30th, the Chinese yuan was valued at 6.97 per United States dollar. This is the lowest the yuan has gone compared to the dollar since May of 2008. Yuan value has been on a steady decline since January of 2018, with total devaluing marked at 9% since then. This news comes on the heels of expert speculation that the tension between Beijing and Washington will be intensifying in the near future. If the meeting between President Donald Trump and President Xi Jinping goes poorly, the White House will be employing another bevy of tariffs against China on top of the ones that have already been instated.
Economists believe that the Yuan’s dollar value will soon reach an even 7 per, and will likely hover around there. Economists hope that, even if the value does not recover, it can at least stay consistent long enough for the market to get its bearings.
