Is China Using the Yuan to Fund a Currency War?
China’s yuan led the biggest two-day selloff in Asian currencies since 1997, fuelling concern that financial-market volatility will curb global economic growth and a possible “currency war” if other countries devalue exchange rates to stay competitive in global export markets.
Yuan Devalued to Combat China Slowdown
The yuan dropped the most in two decades, sparking a tumble in Asian currencies after China devalued its exchange rate to combat an economic slowdown. The devaluation follows economic reports this month showing a plunge in Chinese exports, weaker-than-estimated manufacturing and slowing credit growth.
Yuan Tumble Tests China’s Free-Market Resolve
China has stepped up efforts to boost old growth drivers as new ones fail to offset slowing investment and trade, with the currency slumping after policy makers allowed markets a greater role in setting its value.
