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Macro Comment ChinaChina unleashes the currency weapon

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China's authorities allowed its currency to depreciate and noted that the weakening was related to the trade war with the US. With the USD/CNY having breached the 7.0 threshold, we now expect the CNY to weaken further as the trade war persists.

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Bjarke Roed-Frederiksen

Senior Economist

Latin America and China

bjro03@handelsbanken.dk

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