The Chinese yuan was devalued overnight Monday to below 7 to the US dollar, the lowest in a decade, ushering a dangerous escalation in the US-China trade war. The People’s Bank of China issued a statement saying Monday’s devaluation was the result of last week’s “trade protectionism and new tariffs on China” by President Donald Trump.
Bloomberg reported that currencies have slumped across Asia Monday morning, with South Korea’s won sliding to its weakest point in three years. As traded desperately sought shelter, the yen and Treasuries rallied.
In Israel, last Wednesday, July 31, the shekel closed a monthly increase of 2.7% against the world’s currencies. Since the beginning of 2019, the shekel recorded an overall increase of 7.5%, making the Israeli currency the strongest currency in the world during this period.
Which means that even more currency traders will be seeking shelter in the promised land, making the shekel that much stronger. Indeed, at the start of Monday’s trade, the shekel rose by 50 agorot, to 3.49 shekel to the dollar.
If you’re an Israeli tourist looking for a cheap vacation or a an Israeli looking to buy a new iPad – congratulation, the world is your oyster. If you’re an Israeli exporter – move your plant or orchard to Jordan. And if you’re an American Oleh living off your pension in Israel – you just got a 2.7% pay cut.