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Currency War Begins – Chinese Yuan Crashes Past 7/USD To Record Low

In a dramatically unsettling move for global stability, China’s offshore yuan just collapsed below 7/USD – plunging a stunning 12 handles to its weakest on record against the dollar.

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This is the weakest offshore yuan has ever been against the dollar…

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The last time China’s yuan moved with this velocity, the tremors rippled dramatically and rapidly through the rest of global financial markets.

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As we pointed out earlier…

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“This week’s fixings will send very important signals on the PBOC’s stance,” said Tommy Xie, an economist at Oversea-Chinese Banking Corp. “

A rate that’s stronger than 6.9 shows China’s preference for stability, but one that’s weaker will be seen as a strong hint that more drops will be allowed.”

Kyle Bass suggests the capital exodus has only just begun…

Gold in yuan is accelerating higher…

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Additionally, Bitcoin is well bid…

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We suspect an angry tweet from President Trump is imminent as China ‘weaponizes’ its currency.

As Mick Jagger sang, a U.S.-China war is “just a shot away.”

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Source: zerohedge.com

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