China took action Tuesday that resulted in the biggest one-day drop in the value of its currency in a decade with the apparent goal of reinvigorating a slowing economy.
The yuan slid in value after the Chinese government changed currency controls. The move came amid the latest release of data showing weakening trade in the world's second largest economy.
The yuan fell 1.3% against the dollar compared to Monday's rate. While it might sound modest, it was the biggest one day fall since the yuan's value was decoupled from the American dollar in 2005 and became tied to a basket of foreign currencies, including the dollar.
So, China devalues its currency AFTER dropping $180,000,000,000 worth of US Treasuries. What does that imply?
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