| It's been a year since a sudden, 1.9 percent decline in the Chinese yuan rattled global markets and prompted fears of a global currency war. China has mostly soothed nerves by moderating the renminbi's swoon since then. But what should really put minds to rest is the knowledge that no one - not even China, which arguably did power its rise, at least in part, on the back of an artificially depressed yuan - could win a true currency war today.
The temptation to gain an advantage over competitors with a cheaper currency hasn't diminished, of course. First and foremost, devaluation holds out the promise of boosting exports by making them less expensive.https://www.bloomberg.com/view/articles/2016-08-17/no-one-can-win-a-global-currency-war" target="_blank">Source
|