Is China Using the Yuan to Fund a Currency War?
China’s yuan led the biggest two-day selloff in Asian currencies since 1997, fuelling concern that financial-market volatility will curb global economic growth and a possible “currency war” if other countries devalue exchange rates to stay competitive in global export markets.
[youtube height=”326″ width=”580″]https://www.youtube.com/watch?v=9N-hA-pzy9s[/youtube]Yuan Devalued to Combat China Slowdown
The yuan dropped the most in two decades, sparking a tumble in Asian currencies after China devalued its exchange rate to combat an economic slowdown. The devaluation follows economic reports this month showing a plunge in Chinese exports, weaker-than-estimated manufacturing and slowing credit growth.
[youtube height=”326″ width=”580″]https://www.youtube.com/watch?v=uuT_IDgddiI[/youtube]Yuan Tumble Tests China’s Free-Market Resolve
China has stepped up efforts to boost old growth drivers as new ones fail to offset slowing investment and trade, with the currency slumping after policy makers allowed markets a greater role in setting its value.
[youtube height=”326″ width=”580″]https://www.youtube.com/watch?v=a_rJWsoKM_Y[/youtube]
Hi. China’s devaluation is more about stimulating their economy than attacking others. Only if regarded from a short term “Zero Sum” perspective does it seem that way. If China’s economy has a hard landing, and partially implodes, this will have a negative effect on everyone else. The reduction in commodity prices due to falling Chinese requirements has already impacted the economy of Australia, (and others) for example. All the economies are so interdependent nowadays that China and the US underpin the rest of the world, for good or for ill. Best, hypnohotshot