Article summary In August 2019, China's central bank lowered the exchange rate for its currency, the yuan, to its lowest level in 11 years. The devaluation changed the exchange rate to more than 7 yuan per U.S. dollar, a move some analysts believe is in retaliation to U.S. tariffs on Chinese goods. According to Andrew Collier, managing director of Orient Capital Research in Hong Kong, "The drop suggests that the central bank of China is willing to weaponize the currency in light of the trade war." The move could expand a growing U.S. trade deficit with China, which reached a 5 -month high in June according to the U.S, Commerce Department. Source: Emily Feng "China's Currency Falls To Lowest Exchange Rate In 11 Years", npr.org. August 5, 2019. Refer to the Article Summory. All else equal, a depreciation of the Chinese yuan relative to a currency such as the U.S. dollar should foreign investment into China and exports from china. increase; increase increase; decrease decrease; increase decrease; decrease