The relative yield differentials between the U.S. and China point to the possibility that China will engineer a gradual, but large, depreciation in the yuan this year. … READ MORE >
yuan
Trade war takes dangerous turn toward currency wars: What could happen next?
Chinese fiscal and monetary authorities permitted the yuan early this week to slip below the important psychological level of 7 to the dollar for the first time since 2008. It was a retaliatory measure by China against President Trump’s threat to impose an additional 10% tariff on $300 billion in Chinese exports, beginning Sept. 1. The Chinese government also ordered a halt to all purchases of U.S. crops. … READ MORE >