According to reports from Shanghai, China, it was reported that Chinese fiat currency had dropped a massively and plunged down to 7.03 to a US dollar. The current rate was recorded to be the lowest in the last 11-years which dated back to March 18, 2008. It was also suggested that the exchange rate between the two nation’s currency had decreased by about 2 percent.
The People’s Bank of China [PBoC] set their daily reference rate of the fiat currency at a lowly 6.99, which the lowest rate since December 2018 as the Renminbi [Yuan] plummed to 4,157-day lows at press time.
It was indicated that the change in reference rates was aimed as a response to US President Donald Trump’s tariffs decision. Earlier, Trump had revealed that the country had decided to charge a 10 percent tariff in addition to the $300 billion in Chinese imports, starting September 1st.
The situation in China had a drastic impact in the cryptocurrency industry as following the announcement Bitcoin’s price shot by almost 5.5 percent and at press time it was trading at around $11,354.4.
The current rise in price was attributed to the fact that Chinese investors were investing Bitcoin to create a hedge with the Chinese Yuan as it was also observed that the exchanges with most BTC trade volume were based out of Asia at the time of press.
The other altcoins also seem to benefit from the fall of Yuan as Ethereum also experienced a rise in its valuation as the price hike from $222.2 to about $232.4. The next few days will be interesting to keep an eye out for the prices as the community speculates major price correct might subside following the recent hike.