08.01.2016 - Is China really devaluing its currency?
Markets have taken fright at the prospect a new round of currency wars. But the Chinese say they want a "stable" exchange rate. So what's really going on? Since the summer, investors have been keeping an uneasy eye on the value of the Chinese currency. In August, Beijing decided to tweak its exchange rate peg with the dollar, making the renminbi float in a wider band against the greenback. This sparked immediate market panic that China was entering into the world's currency wars. But the devaluation in itself was small. Allaying fears further, the Chinese began to immediately intervene to prop up the RMB to stop it falling too fast by drawing down their reserves...............................................Full Article: Source
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