China Devalues Yuan To Weakest Fix Since May 2008
By Tyler Durden
Following last night’s bond bloodbath, The Fed fallout continues in China as The PBOC has devalued the official Yuan fix the most since Brexit to its weakest level since May 2008, breaking above 6.95/USD. Since the “one-off” devaluation in Aug 2015, the Chinese currency has now weakened almost 14% against the dollar.
While the broad Renminbi basket has been “stable” against China’s global trading partners for 3 months…
It appears the devaluation pressure has been focused back against the US Dollar…
And bear in mind that the “stability” we described above came at the grand cost of a stunning quarter of a trillion in reserves ‘defending’ the outflow pressure in 2016…
For now the China bond market has stabilized a little (by which we mean it is not collapsing).
At some point this butterfly’s wings of turmoil will ripple across the world’s liquidity markets and punch all those with a plan in US banking stocks in the face… the question is, when?
Source: China Devalues Yuan To Weakest Fix Since May 2008
