Livewire has acquired Market Index, the country’s leader in free stock market data.
Find out why.

Making sense of china’s currency move

Livewire News

Livewire

Mohamed El-Erian: Yesterday China openly devalued its currency to boost its economy. With this move, China explicitly joins other nations trying to capture economic activity outside their borders, and it is doing so as the global economy is struggling to generate sufficient growth. The longer countries fail to deliver domestically driven growth, the more they will be tempted to “steal” it from others. A way of trying to do so is to devalue a national currency in an attempt to make exports more competitive and imports more expensive. But what may work for individual countries cannot work for the system as a whole; and that has implications for financial markets. China’s decision must be a consideration in the Federal Reserve’s intense deliberations on when to start its interest rate hiking cycle. In time, China’s currency move will be viewed as an important step in the country’s multiyear journey toward a more efficient and responsive market-determined system. Short term, it will amplify the challenges to global growth, and add volatility to markets that have lost some of their fundamental anchoring. (VIEW LINK)


Livewire News
Livewire News
Livewire

Livewire News brings you a wide range of financial insights with a focus on Global Macro, Fixed Income, Currencies and Commodities.

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.