Currency wars? Chris Watling thinks more like ‘currency agreements’

Over recent weeks there has been a lot of ‘noise’ around the Yuan devaluation and what it means for global markets. Chris Watling, CEO, Longview Economics puts the issue into perspective ‘China (Yuan) has clearly been moving with the USD so it has had a very strong currency, at a time when growth has been very slow, so its only right and proper that it should have some devaluation.’ Watling refers to the recent PBoC move as ‘a small devaluation of 4%, I suspect they will eventually get up to 10%, but they will do it very slowly now and we will forget about it and won’t really notice.’ Watch the video for more of Watling’s measured view on ‘currency wars’.