China has devalued its currency and affects the global economy

The trade fight between China and the United States is shaking the world again and Argentina is not without risks. The Asian giant has made a major devaluation of its currency, the yuan, a measure that can have repercussions worldwide.

The devaluation of the yuan was 1.6%. Every dollar in this country exceeds 7 yuan, which makes "Chinese products" more competitive. That is to say that buying Chinese costs less

The problem could come from the US response to this decision.

The measure was implemented through the People's Bank of China, which has increased its reference value. This is the lowest level since the devaluation it faced eleven years ago in response to the international financial crisis.

One of the immediate repercussions around the world has been the fall of the major exchanges that are already working, a problem that had already started on Friday.

"We thought we had an agreement with China three months ago, but unfortunately China has decided to renegotiate it," US President Donald Trump told his Twitter account.

The value of the yuan in the informal market was 7.0282 to the dollar, after falling 1.26 percent from last Friday. This represents its lowest level since 2010. The markets had insisted that the value of the Chinese currency should drop to 7.11 for a dollar after the opening of the markets, but then increase slightly after a possible intervention of the Bank. Chinese Central. This institution said to have "the experience, the confidence and the ability to keep the exchange rate of the yuan at a reasonable and balanced level".

The trade war between the United States and China affects businesses for more than $ 360 billion a year.

The devaluation of the Asian currency encourages Chinese exports and would have an impact on US tariffs on Asian giant products.

Argentina, like the rest of the world, is not immune to these measures.