Chinese Central Bank Devalues Yuan by 0.6% as Trade War With US Heats Up

BEIJING (Sputnik) – The People's Bank of China said on Tuesday it had decided to devalue the yuan's exchange rate to the US dollar by 0.6 percent amid the ongoing trade war with the United States.

The new exchange rate, set by the bank, amounts to 6.8365 yuan per US dollar, while a day earlier it was 6.7954 yuan per dollar.

On Friday, the United States increased the tariffs on $200 billion worth Chinese goods from 10 percent to 25 percent, thus escalating the trade conflict between the two nations. According to US President Donald Trump, Washington will also impose new tariffs on all remaining US imports from China, valued at around $300 billion.

READ MORE: Trump Denies WH Adviser's Claim US Consumers to Pay for Tariffs on Chinese Goods

In response, Beijing has introduced 25, 20, and 10 percent import duties for 5,410 US products, starting from 1 June.

The People's Bank of China has been devaluing the yuan since 2015, which has been viewed by many experts as a tool to stimulate the country's exports. During the trade talks with China, Washington many times said that it would impose new tariffs on Beijing in the event of the yuan being further devalued.