24.03.2014 - Yuan's decline raises concerns over currency war
The recent sharp decline in the Chinese currency is threatening to exacerbate China's trade tensions with the U.S. and raising concerns over a potential currency war in Asia. China's central bank has intervened since late February to drive down the value of the yuan against the U.S. dollar by 2.8% so far in 2014, almost erasing all of its gains last year and ushering in a rare period of weakness for a currency which has steadily appreciated over the past decade. The People's Bank of China argues the depreciation is needed to drive out speculators who were betting the yuan would continue to rise, according to people with direct knowledge of the central bank's thinking...............................................Full Article: Source
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