The US officially accuses China of manipulating its

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The US Treasury Department has officially accused China of manipulating its currency to gain "an unfair competitive advantage." The accusation comes in response to Beijing's devaluation of the yuan to its 11-year low due to increased US tariffs against its products. The escalation has spooked global markets, causing falls of between 2.9% and 3.5% in all major US indices and triggering a global crash. Outside the US, the European FTSE fell 2.5%, the German DAX fell 1.8% and the French CAC fell 2.2%, while the Ibex 35 fell 1.35%. The price of iron ore fell 6.6%, while the price of gold, considered a safe value in times of stock market volatility, has risen around 1.6% as investors take refuge in it . As Asian markets have opened, red numbers have recurred.

The Australian ASX 200 index fell 2.44%, the South Korean Kospi 1.54%, the Chinese Shanghai Composite 1.64%, the Hang Sheng of Hong Kong 1.13% and the Japanese Nikkei 225 0.65%. Discover more stories on  Business Insider Spain. In a significant escalation of the trade war , the US Treasury Department has formally accused China of manipulating the value of its currency against the US dollar Middle East Phone Number List  to give itself an "unfair competitive advantage in international trade." Although US President Donald Trump  has been calling China a currency manipulator for years, this latest statement from the Treasury indicates that neither side is willing to back down . This measure was announced after  the People's Bank of China set the value of its currency, the yuan, below 6.9 units per dollar this past Monday , which is its lowest in the last 11 years.



A cheaper currency will help China counteract the effect of the latest tariffs imposed by the US on its products , since it means reducing the cost of Chinese exports . Read more:  America has already fought a trade war in Asia, these are the lessons of the past for the China of the present The latest dispute between the 2 largest economies in the world has exacerbated investor fears, triggering a crash on Wall Street : the S&P 500 with falls of 3%, the Dow Jones of 2.9% and 3.5% in the Nasdaq, the selective one in which Apple and Amazon are listed. Given the potential impact of a full-scale trade war, this crash spread beyond the US. The European FTSE fell 2.5%, the German DAX 1.8%, the French CAC 2.2 % and the Spanish Ibex 35 1.35% .