CNBC: Why China's yuan may be set for 15% devaluation
China is mulling a 15-20 percent devaluation of its currency by the end of 2016 in a move that could spark a crisis in Asian markets, according to research firm IDEAglobal.
It cited an interview it had conducted with a "reliably-informed Asian source" in a release published late on Tuesday.
China, the world's second-largest economy after the U.S., devalued its currency last month in a bid to help exporters. The country is grappling with a softening economy and wild swings in the stock market.
"Having achieved a 3 percent move in a few weeks, they would not want to stop here. Their ultimate target is probably a 15 to 20 percent minimum move in the trade-weighted index," IDEAglobal cited the source as saying in an interview.
WNU Editor: Such an action will guarantee a currency war and a stock market volatility that we have not seen in a very long time.
No comments:
Post a Comment