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A Line In The Sand: Why China Can't Risk The Yuan Falling Much Further
Since President Trump canceled the trade-deal with China earlier this month. And instead raised tariffs – global markets (and currencies) have plunged. Especially the Chinese yuan – which is now down nearly 3% against the U.S. dollar this month. (And one of the worst performing currencies in the world). . . Putting things in perspective – the last six months of yuan gains (beginning November 2018) were wiped out entirely over just a couple weeks. But now – it appears that the Peoples Bank of China (aka PBOC – China’s central bank) has drawn a red-line in the sand. And that’s because they can’t afford ... (full story)