China has abandoned its currency and the dollar has crossed the barrier of 46 dollars to the National Bank

China has reduced its currency to the lowest level in more than a decade and has called on state-owned companies to suspend imports of US agricultural products. Beijing's decision came days after US President Donald Trump announced a tariff adjustment for Chinese products, according to the Bloomberg agency.

Emerging markets' equities and currencies have sunk, fearing that a protracted conflict between the superpowers is weighing on global economic growth, while safe haven badets, including the Japanese yen, Treasury bonds and the US dollar, are likely to continue. Now, they are mounted. This is how, in our country, the dollar has risen 60 cents and the National Bank quotes $ 46.40. At the same time, Argentina's country risk rises by 7% to 890bps.

Investors have multiplied the bets on interest rate cuts from the Federal Reserve. The relationship between the dollar and the renmimbi (Chinese currency) exceeded 1 to 7, after last week, Trump had proposed to add 10% of tariffs to 300 billion additional dollars of Chinese imports to count September 1st.

The threat of new tariffs came as Chinese President Xi Jinping and other prominent members of the Communist Party gathered for a secret summer getaway in Beidaihe, a coastal city about a three-hour drive from Beijing.

The hardest line underscores growing sentiment in Beijing that Trump can not be trusted to reach an agreement and that it would be better to wait to see if a Democratic presidential candidate, whose many have criticized the use of tariffs, comes to power. Interrupting agricultural purchases could hurt Trump in politically sensitive states ahead of the 2020 elections.

The MSCI Asia Pacific Index fell 2.1% on Monday, its largest decline since October 2018. European equities and futures on the S & P 500 index also fell, as did the performance of US Treasury bonds. UU. At age 10, it declined by about 8 basis points to 1.77%, its lowest level since 2016. The renminbi has weakened 1.7% to 7.0909 for a dollar after the People's Bank of China set its daily benchmark to a lower level, which is 6.9 for the first time since December.