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Chinese currency falls for 2nd day after surprise devaluation

16 Comments
By JOE McDONALD

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16 Comments
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Currency wars loom. good chance yen goes weaker soon as BoJ or similar talk the yen down.

-4 ( +0 / -4 )

Currency war for sure... :/ the world is in a mess.

0 ( +1 / -1 )

Yuan is at a four year low as offshore trading circumvents bank of China fix banding,1.74% ....Economic indicators, factory, investment and retail numbers will force the currency down still further. Central Bank insists in a note there is no long term depreciation.....

1 ( +2 / -1 )

I've said it once before and I'll say it again, You go to bed with Commie Dogs, then you are sure to wake up with Commie Fleas.

Think I feel sorry for Wall Street & The Foreign Investors who are getting sapped by China by dropping the value of their currency in order to save their own worthless disloyal hides because they Bull-Ran their markets instead of recessing?

Nope.

Loosing Money Apple? Loosing Money Microsoft? Goodyear? General Motors? Toyota? Cadillac?

Can't sell to the Chinese like you sell here in the States or Japan eh?

Look out Apple and Samsung - Xiomi is moving in for the kill.

BTW: When have The Japanese ever devalued the Yen in order to get a more competitive edge in the Global Markets or Trade? - Never

They Recess and play fair on the Competitive Markets and how does Wall Street & The Foreign Invrstors repay Japan for that Fair and Loyal Maket Practice? They order the NSA to spy on The Japanese and then LIE to The Japanese - THE ABANDON The Japanese Manufacturers because "Made In Japan" takes a bit longer to produce due to The Japanese very close attention to detail & precision manufacturing & cost a little bit more than Cheap, Quick, & Half-A** "Made In China" BUT despite all of the rhetoric; The Japnese Recess their markets so Wall Street can shuffle their cards around in order to keep their stock values in tact without losing value.

But does China? Will China make a sacrifice and tecess their markets? Nope - Never. They devalue their currency causing Wall Street to tumble send Global Stocks into the toilet before they will sacrifice 1 Yuan.

China has never been known to demonstrate ANY LOYALTY to anything but Communist China and ONLY Communist China.

Finally, The Oil and Energy Giants that import Gas & Oil are next. This is why China has been actively engaged in "Land Reclaimation" in The South China Sea. They are targeting the rich Oil & Gas reserves near Malaysia and with a strong Military Presence in place - who's going to stop China from thieving away the Oil & Gas? That will really drive the markets down.

Enjoy the Flat-Spin Wall Street - You've Earned it.

-1 ( +4 / -5 )

This is a reason why China was not invited to TPP.

I understand Yuan wants to take over USD in global market? No chance and China remains as a manufacturing factory.. Nothing more.We cannot trust China as a global financial player.

0 ( +4 / -4 )

Saketown:

BTW: When have The Japanese ever devalued the Yen in order to get a more competitive edge in the Global Markets or Trade?

"Abenomics" involves doing exactly that: have the central bank monetise the government debt to drive down the Yen and help out Japanese exporters. The Japanese government is no different to the Chinese in that respect.

2 ( +2 / -0 )

'Abenomics' is a reflationary measure, monetary relaxation, fiscal stimulus, essentially a growth strategy, the logical response after years of long-term deflation, it's effectiveness is a matter of debate, as the essential third element, economic reform and restructuring has remains missing in action.

The Bank of China decision to allow the Yuan to 'float', depreciate, and has to viewed alongside a basket of current economic indicators,t hat reflects numbers that point to a much more pronounced slow down than the finance ministry is revealing. The deflationary consequences to global economies is pronounced and real. The question is will the Bank of China release it's currency reserves to reposition the Yuan?

0 ( +1 / -1 )

Turmoil indeed. That's why everybody has been pilling into the US dollar for the last 3 years or so. Who holds anything else nowadays??

-1 ( +2 / -3 )

The Bank of China decision to allow the Yuan to 'float',

What on earth are you talking about ?

The question is will the Bank of China release it's currency reserves to reposition the Yuan?

Major state(Chinese) banks had been buying yuan and selling dollars causing the exchange rate to recover sharply in late trade, this influences the PBOC's guidance rate for the following day.

The Chinese at street level are now trying to off load their safe haven USD for a poor return just to maintain repayments on investment loans/mortgage etc.

1 ( +1 / -0 )

Now people are getting very suspicious. When China devalued the yuan on the first day, they said it's just an one-time thing. Now, not only have they went against their own word and done it again but done it for three days in a row!

Everybody already knows that China's public economic figures are already suspect, moreso than others since China is a centralized economy. Now those economic figures may be more off than even expected, that the Chinese government knows how really weaker their economy has been going than they let on - such that they had to repeat this critical maneuver thrice in 3 straight days, a very desperate move.

What's really going on?! But since it's China, good luck acquiring much info from them.

0 ( +1 / -1 )

Hi Keike1628, The Yuan has been 'artificially' pegged against the dollar, yesterday the Bank of China abandoned the implementation of the 'new' fixing mechanism. At this moment in time the Yuan is 'floating' i.e 'forces that be' are letting free-market forces decide the currency’s value. I'm hooked directly into the credit suisse trading platform. The question is this a 'toe dipping' exercise?

I have a current Bank of China note “In view of both domestic and international economic and financial condition, currently there is no basis for persistent depreciation'. The central bank has the yuan’s 'C' parity rate at 6.4010 yuan for US$1. There is a herd mentality building, expecting direct intervention when it reaches around the10 to 12% tumble.

0 ( +0 / -0 )

itsonlyrocknroll: The yuan is not a reserve currency, or a free-floating one. But it is on its way. It will come when enough members join China in creating a new "World Bank" for Asia

End of Story.

0 ( +0 / -0 )

By setting spot rate to previous day's closing C parity rate is in all but name allowing the Yuan to freely trade to effectively 'float'. Factor in the poor July production numbers, expect the Yuan to fall further. The central bank in backtracking, is this a full on strategy of devaluation? The policy is not free floating, well not directly as such, but this 'floating' manoeuvre is bring utilized to devalue.

keika1628 check your wedges and surge rate, plus +2,000 pips off scale to last 10-days trading average of 68 pips. Bank of China objectives to monetary policy objectives have markedly changed.

0 ( +0 / -0 )

Today, China did another currency devaluation #3. Well, this is just a temporary solution, I tell you..

The real solution for China is to improve a quality of Chinese products and services in be competitive in global market, nothing to do with currency.

0 ( +0 / -0 )

Thumbs up itsonlyrocknroll , Tired going to bed, going to dream about how China & Russia settle their off shore accounts in Greenback.

0 ( +0 / -0 )

Good luck keika1628, final thought, surge rate (USDCNH) from Tuesdays open 3.546% the highest since the currencies first trade, this devaluation has to be questioned, I hope things go okay for you.

0 ( +0 / -0 )

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