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China Says Won't Devalue Currency, But Market Will Anyway
China's government pledged not to devalue the yuan to make up for extra tariffs coming next month, but that doesn't matter. The market will devalue it anyway. The People's Bank of China probably won't stop it. "I think there is going to be this 'staircase movement' in the yuan, letting it fall 3% to 5% within the next two months and then keep it stable for about six months before making the next depreciation move," says TS Lombard's chief China economist Bo Zhuang. "They do this in order to stabilize market expectations. People in China know what's coming. I would say that if China doesn’t get a deal with the U.S., ... (full story)