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Jim Cramer: The Yuan Devaluation Was a Mistake by the Chinese

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It's been a busy Monday. 

Let's talk about the yuan--which weakened to the lowest level in a decade versus the dollar.

The People's Bank of China let the so-called on-shore yuan fall past the psychologically important threshold of 7.00 against the greenback in early Monday trading, citing in a statement "unilateralism and protectionism," as well as the expectation of additional tariffs from the United States, reported TheStreet's Martin Baccardax.

Jim Cramer broke down why he thinks that the weakening yuan is a mistake by the Chinese. 

"Well, it's a mistake by the Chinese. They genuinely think that, again, this is their mistake. [They are] making a very big mistake. They genuinely believe that if you make it so that your products are cheaper, then, they'll be a winner somehow. Of course, if you put a 10% tariff and you devalue your currency by say one and a half. No, I mean Apple (AAPL) - Get Free Report ...whatever's made there is going to cost more. It's always going to cost more. So they are just--they're playing out of a playbook that is really very ill-advised," he said.

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