In a piece written in the The Daily Telegraph, titled, "China's next riposte in US trade spat could be 'hidden weapon' of currency devaluation", the paper notes that analysts believe that Beijing is "mulling a devaluation of the Chinese yuan" as a "hidden weapon" in its trade war arsenal.
The articles read that, "after Donald Trump warned that the White House was lining up a further $100bn of tariffs on Chinese products, Beijing ran out of US imports to ramp up taxes on. Some $550bn of products emblazoned with the Made in China stamp flooded into the States last year," . . . "A currency war — the use of monetary policy to devalue a currency to gain an advantage in international trade by making exports cheaper, also known as competitive devaluation — is one method for Beijing to even the odds in a trade skirmish between the world’s two largest economies."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.