China Does A Policy Twist – What’s Behind the Yuan Devaluation

200 years earlier, Napoleon is said to have remarked – “Let China Sleep, for when the Dragon awakes, she will shake the world.” What surreal wisdom…

China has clearly shaken the status quo of global economic dominion over the last 10 years. However, on the 11th of August, it shook up currency markets in a clear break from what was expected to be a one way trade. The People’s Bank of China (PBoC) raised the USD-CNY fix to 6.2298 from 6.1162. This was the biggest one-day move since the Yuan officially de-pegged from the U.S. Dollar in 2005. 
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