16.09.2016 - Everything You Need to Know About China’s Weakening Currency
Chinese central bankers must be grinning over their cups of hot tea. In August 2015 the People’s Bank changed the way it manages China’s renminbi. The currency’s 2% overnight fall triggered a global stock plunge, as investors worried that China was using devaluation to rescue a flailing economy. When the smoke cleared, China promised to keep the RMB stable. But the currency kept falling: The RMB is down 3% this year against the dollar, and more against a global basket of currencies. “It is hard to square the continued depreciation?…?with the official commitment to maintain broad stability,” Capital Economics chief global economist Julian Jessop observed recently. And yet investors have reacted with a resounding “meh,” with U.S. stocks doing especially well...............................................Full Article: Source
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