China has been quietly devaluing the Yuan again

Back in January, China sent world markets into a correction as they devalued the Yuan; between 31 December and 11 February, the broad MSCI All Countries World Index fell by 12%. Now, while everyone’s attention has been turned towards Britain, they’ve been quietly devaluing again. The Telegraph’s Ambrose Evans-Pritchard reported this week that the Yuan had been devaluing at an annualised rate of 12% since the beginning of the year. The People’s Bank of China had earlier promised to keep the exchange rate stable, Mark Williams of Capital Economics said: “This makes a mockery of the PBOC’s suggestion that its policy is to keep the currency’s value stable. Markets will not take PBOC policy statements at face value in the future.” Mr. Evans-Pritchard said this is “sending a powerful deflationary impulse through a global economy already caught in a 1930s trap.” (Image source: CNN Money)