China Shakes the international trade with another devaluation

China Shakes the international trade with another devaluation -

The Central Bank of China today returned to devalue its currency, dropping 1.6 percent the value of the yuan against the dollar, but it is known whether there will be more interventions.

in a statement from the financial institution noted that "at present there is no reason to continue the devaluation of the exchange rate," according to agency DPA . But on Tuesday the bank had also said it was a "single measure" and yet has been repeated.

Thus, the entity stood Wednesday the reference value in the 6 , 3306 yuan per dollar.

Yesterday the Bank had lowered its value to 6.2298 yuan, 1.9 percent less than on Monday, which brought down the currency to its lowest level in three years.
the move is seen as supporting the export industry, which is very weak. In July exports fell 8.3 percent from the same month last year.

In the past 12 months, the yuan had been rising almost on par with the dollar against many international currencies. Against the euro rose nearly 20 percent in a year, which urged clearly Chinese products in its main market, Europe.

The IMF and the European Commission concluded the measure

the devaluation was greeted by International Monetary Fund (IMF), because it implies that from now on the market will have a greater role in determining the exchange rate. the European Commission in Brussels also considered positive shift in policy.

The Chinese currency is still not totally free float as others, so that the reference value it is set each day is of great importance. The Central Bank allows only oscillations of up to two percent up or down from the set figure. So far the value was established by the institution, while the authorities announced on Tuesday that the new policy the figure will be oriented according to the previous day's close, giving the market a greater influence.

Beijing hopes thereby increase their chances of the yuan become part of the basket of currencies the IMF global reference. In May the agency had certified that Beijing no longer artificially manipulated the yuan and was fit to enter the group, made so far by the dollar, euro, British pound and Japanese yen.

Anibal Fernandez said the Chinese devaluation "will not affect patrimonially nothing"

Cabinet chief Anibal Fernandez , he said today that the devaluation of the Chinese currency "will not affect anything patrimonially" to the economy of Argentina. S ubrayó that "reserves reach 33.800 million" dollars and debt with China is valued in yuan, so "there is no harm to our country."

Source: Telam

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