Posted on 08/12/2015 9:03:30 PM PDT by tcrlaf
The "one-off" adjustment has now reached its 3rd day as The PBOC has now devalued the Yuan fix by 4.65% back to July 2011 lows.
The PBOC seeks to reassure... -CHINA PBOC SAYS YUAN REMAINS STRONG CURRENCY IN LONG-TERM -PBOC SAYS THERE IS DEMAND FOR DEVALUATION OF YUAN VS USD -PBOC CHANGE OF YUAN MECHANISM RELATED TO JULY CREDIT: ZHANG -PBOC SAYS YUAN CHANGE IS BENEFICIAL TO LONG TERM STABILITY -PBOC SAYS YUAN EXCHANGE RATE ADJUSTMENT ALMOST COMPLETED *YUAN RATE ADJUSTMENT POSITIVE TO CONFIDENCE IN YUAN: PBOC'S YI *NEW YUAN MECHANISM `POSITIVE' TO INTERNATIONALIZATION: PBOC YI *PBOC SAYS NO BASIS FOR YUAN'S CONSTANT DEVALUATION: ZHANG
Even before this evening's date with debasement history, Japan felt the need to step up the currency war rhetoric. Following disappointing Machine Orders data, Abe advisors Hamada warned that "Japan can offset Yuan devaluation by monetary easing," and so the race to the bottom escalates. China has its own problems as BofAML's leading economic indicator showed "the foundation for a growth recovery is not solid, facing more downward pressure," and while confusion reigns over why The PBOC would intervene at the close to strengthen the Yuan last night, the reality is the commitment isnt to a devaluation for Chinas exports, but undoubtedly its actions are directed toward trying to keep the wholesale finance interfaces somewhat orderly. Finally, Chinas devaluation couldnt come at a worse time for Argentina - about a quarter of the countrys $33.7 billion of foreign reserves are now denominated in yuan, which suffered its biggest loss since 1994 on Tuesday.
Having devalued the (onshore) Yuan fix by 3.5% in the last 2 days, China did it again... shifting Yuan to 4 year lows
-CHINA SETS YUAN REFERENCE RATE AT 6.4010 AGAINST U.S. DOLLAR
(Excerpt) Read more at zerohedge.com ...
It will also be a strong deterrent for the Chinese and Russians in their efforts to expand their influence around the world. Those activities are expensive and they don't have the money to continue for very long.
Thanks.
Argentina, another centrally planned economy, hitched its horse to the wrong cart.
What is a currency devaluation and how does it affect first the domestic and then international marketplace?
I hear a lot of idiots saying that, but they are, you know, idiots.
That's the perfect response. Government should stay out of the way. Only Democrats want government intervention, right?
Fine....crash the western economies...we can’t buy their crap. then they are in a worse mess!
China devaluation of the yuan is not going to crash our economy. It may cause deflation here in the USA as their crapola they export to us becomes even cheaper. We export a fraction of what we import to China so any decrease in our exports will be negligible.
bs . you and obama have the samme answer and it’s wrong. you and obama are on the same team
all the other countries in the world are devaluing. you idiots don’t have a clue and you think you know but all the asian countries are right and you and your obama are wrong
Why is a strong dollar bad? What will happen to the US if the dollar is strong?
Also, What is the difference between information, knowledge and wisdom?
Whenever I meet an economic hysteric I always like to see what they know. Pretty graphs and emotional writing do not a rational argument make.
A strong dollar is good for the American consumer: more purchasing power.
A strong dollar is bad for US exporters, making their products more expensive abroad. However, for US exporters who rely on foreign inputs for their products, they also benefit from a strong dollar.
Smart move. Capitalizes China. Cheaper costs in China means incentive to buy Chinese. Puts some foreign companies out of business. Establishes supply chains to China. Later, raise currency valuations.
Exactly. So Democrat Media is a shill. The only danger of the Yuan devaluation is that if our interest rates go up, we are exporting inflation. Under that scenario we should expect prices here to fall further, particularly in RE.
The FED is out of bullets and we remain in a very deflationary environment. They should bite the bullet and let the interest rate float back up to normal, wherever the market takes us. That would wash out the bad capital and cause an inflow of good capital.
Once Obama is out of office that can also be achieved through fiscal policy via tax and regulatory reform. What will happen either way is that Americans will continue to innovate their way around the problem. High prices cure themselves.
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