Reuters: Weaker Chinese yuan talk raises spectre of FX race to the bottom

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Weaker Chinese yuan talk raises spectre of FX race to the bottom​

https://www.msn.com/en-ca/money/top...-spectre-of-fx-race-to-the-bottom/ar-AA1vH9Xk

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Reuters reported on Wednesday that China was considering letting the yuan fall to weather what is likely to be a sharp hike in tariffs, citing people familiar with the matter. The yuan immediately dipped against the dollar, along with currencies across Asia which are highly sensitive to Chinese demand.

While a weaker yuan had been widely expected, with pressure on the exchange rate since the election of Donald Trump as U.S. president, framing it as a policy shift may herald the start of a new round of global tariffs, trade tensions and currency intervention.

"Currency adjustments are on the table as a tool to be used to mitigate the effects of tariffs. I think that is clear," said Fred Neumann, chief Asia economist at HSBC in Hong Kong.
 
Weaker Yuan can offset the impact of US tariffs.

It can also support and bail out China's crumbling property prices. Indonesians have been making tonnes from properties because of the continued depreciation of Rupiah.
 
69 yuan to 1 usd can break trump’s tariffs on tiongcock. atb “massage specialists” can basically bring happy ending prices down to $6.9 per cum in amerika and cause niggress and latina prostitutes to retire early.
 
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Dr Christopher Cheok C S said:
It can also support and bail out China's crumbling property prices. Indonesians have been making tonnes from properties because of the continued depreciation of Rupiah
Click to expand...
Huh? Indonesian economy will continue to bleed by sinkie parasitic financial centre. Hence it's spiralling downward currency.
 
Dr Christopher Cheok C S said:
Weaker Yuan can offset the impact of US tariffs.

It can also support and bail out China's crumbling property prices. Indonesians have been making tonnes from properties because of the continued depreciation of Rupiah.
Click to expand...
CNY devaluation will trigger many other countries including SEA to devalue as well. This is a race to the bottom.
 
This confirms that China is deflating.


 
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