Chinese currency devaluation will serve to reduce inflation in the U.S., as China exports its deflation.
The MSCI World Index is up 14 percent from its mid-February lows, as stocks have shaken off fears of a global recession, an oil - price collapse and
a Chinese currency devaluation.
A Chinese currency devaluation is less of a concern than a Chinese slowdown, with real GDP forecast to be down 0.2 percentage points.
Even the stock market volatility and
Chinese currency devaluations aren't a major concern at this moment.
Not exact matches
The global stock market rout of the past week was sparked by concerns over a possible interest rate rise by the U.S. Federal Reserve and not by the
devaluation of China's yuan
currency, a senior
Chinese central bank official told Reuters on Thursday.
That resulted in an effective 2 percent
devaluation in the
currency, a move which sparked fears of a «
currency war» to make
Chinese exports more competitive.
«Our biggest competitors are
Chinese companies, who are already benefiting from the high Australian dollar and the
devaluation of their
currency.
Many have speculated that the recent increase in the price of bitcoin ($ 542 USD on Bitfinex at time of publication) can be traced to China, where Bitcoin trading has doubled on some exchanges in the last four days as
Chinese investors respond to a recent
currency devaluation, and look for ways to avoid the government's stringent capital controls.
«
Devaluation of
Chinese currency has had an enormous impact on the American economy.