CNY: devaluation from the PBOC? - Telegraph
|In a piece written in the The Daily Telegraph, titled, "China's next riposte in US trade spat could be 'hidden weapon' of currency devaluation", the paper notes that analysts believe that Beijing is "mulling a devaluation of the Chinese yuan" as a "hidden weapon" in its trade war arsenal.
The articles read that, "after Donald Trump warned that the White House was lining up a further $100bn of tariffs on Chinese products, Beijing ran out of US imports to ramp up taxes on. Some $550bn of products emblazoned with the Made in China stamp flooded into the States last year," . . . "A currency war — the use of monetary policy to devalue a currency to gain an advantage in international trade by making exports cheaper, also known as competitive devaluation — is one method for Beijing to even the odds in a trade skirmish between the world’s two largest economies."
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