China has been quietly devaluing the Yuan again
Back in January, China sent world markets into a correction as they devalued the Yuan; between 31 December and 11 February, the broad MSCI All Countries World Index fell by 12%. Now, while everyone’s attention has been turned towards Britain, they’ve been quietly devaluing again. The Telegraph’s Ambrose Evans-Pritchard reported this week that the Yuan had been devaluing at an annualised rate of 12% since the beginning of the year. The People’s Bank of China had earlier promised to keep the exchange rate stable, Mark Williams of Capital Economics said: “This makes a mockery of the PBOC’s suggestion that its policy is to keep the currency’s value stable. Markets will not take PBOC policy statements at face value in the future.” Mr. Evans-Pritchard said this is “sending a powerful deflationary impulse through a global economy already caught in a 1930s trap.” (Image source: CNN Money)
Patrick was one of Livewire’s first employees, joining in 2015 after nearly a decade working in insurance, superannuation, and retail banking. He is passionate about investing, with a particular interest in Australian small-caps.
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