China's Yuan Tumbles

[F-22Raptor]

China’s yuan slumped to a one-year low as the central bank showed little sign of intervening to slow the currency’s descent and bets for monetary policy easing mounted.

The yuan dropped as much as 0.85 percent to 6.8032 per dollar in offshore trading, the lowest level since July 2017. The People’s Bank of China weakened its fixing beyond 6.7 on Thursday for the first time since the currency began tumbling in June. Signs of further monetary easing are also adding strains, with China Business News reporting policy makers have made efforts to encourage bank loans and investment in lower-rated corporate debt.

The yuan has fallen more than 4 percent in the past month, the worst performance among 31 major currencies, as the world’s second-largest economy falters and a trade spat with the U.S. escalates. China will tolerate higher volatility in the yuan and a moderate weakening of the currency as long as there’s no major threat to financial stability, according to Pacific Investment Management Co.

The fixing “signals the PBOC is not defending any line in the sand for the exchange rate and is comfortable with gradual yuan depreciation,” said Tommy Xie, an economist at Oversea-Chinese Banking Corp. in Singapore. The signs of easing are “certainly not supportive to the yuan, and the currency may see another wave of selling pressures ahead.”

https://www.bloomberg.com/news/arti...ncy-reference-rate-weaker-than-6-7-per-dollar

 

[nang2]

It has touched 6.9 in this year before. No big deal. Let it fall so there may be an investment opportunity.

 

[lcloo]

Good news for importers of Chinese goods, especially Americans because cheaper FOB prices will offset effects of additional costs from the increase in tariff, and might actually increase Chinese exports.

But bad news for USA because exchange rates will render goods imported into China more expensive, add that with the tariff imposed on American goods, "Made in USA" will be unaffordably expensive, and US sales to China will drop more sharply.

And American companies might as well set up more factories in China for Chinese and global market (except USA), just like TESLA did. Too bad for the workers in USA, more job opportunities may be lost instead of gain.

 

[大汉奸柳传志]

good thing we don't have a Wall street who always demands a strong currency to function

 

[Viva_Viet]

life in CN will become harder as food, water, fuel price will skyrocket. They kids just starved to death in dirty trash bin, so from now, more Cnese kids will starve to death in trash bin again due to too high food price

 

[Kiss_of_the_Dragon]

life in CN will become harder as food, water, fuel price will skyrocket. They kids just starved to death in dirty trash bin, so from now, more Cnese kids will starve to death in trash bin again due to too high food price

Came from a nation that depend on China for it own survival, their women came to China begging for job is sign that Vietnam is a desperate nation, we control their water mean we control their food too basically Vietnam is totally at the mercy of China, our kids are more healthier than Viet's which their playing yards are slum and dump yards and eat virtually nothing for survive, most likely they will be first to be the victim than Chinese kids...want to curse us, better curse you.

 

[sweetgrape]

Yeah, we are scared to tumble including Yuan. Very india style, now influence America, America need more indian

life in CN will become harder as food, water, fuel price will skyrocket. They kids just starved to death in dirty trash bin, so from now, more Cnese kids will starve to death in trash bin again due to too high food price

Of course, maybe less Vietnamese bride come to China, could you monkey supply us more Banana? we can trade with you, we have enough missile and other weapon, or we can teach you how to live on the land?