MercoPress. South Atlantic News Agency
China devalues the currency in support of its struggling export sector
China has moved aggressively to devalue its currency in a bid to support its struggling export sector as the economy shows further signs of weakness on the way to reporting its slowest annual pace of growth in 25 years. The People's Bank of China surprised the market on Tuesday weakening the fix on its daily reference rate for the Yuan by a record 1.9%. Read full article
Comments
Disclaimer & comment rulesdevalue its currency
Aug 11th, 2015 - 09:56 am - Link - Report abuse 0Cracks are showing, leaks are abound ,
and seepage can be seen through the holes,
but will she come back from the brink.
The little boy and the dike.
Aug 11th, 2015 - 10:41 am - Link - Report abuse 0@2 Captain Poppy
Aug 11th, 2015 - 10:47 am - Link - Report abuse 0The problem for China though is that there are too many cracks and the little boy only has 10 fingers.
Eventually the dam will burst, and they'll no longer be able to prop up the Yuan against the US dollar, leading to a massive devaluation.
But that's economics for you, and trying to enforce an exchange rate because of politcial reasons has never worked. Market forces, like nature itself, always brings it back into balance.
Too little, too late.
Aug 11th, 2015 - 11:52 am - Link - Report abuse 0Give it a month or two and we will see another load of crap similar to this:
““for the purpose of enhancing the market-orientation and benchmark status of central parity, the PBC has decided to improve quotation of the central parity of RMB against US dollar.”
Yes, that was an 'improvement' alright!
#3
Aug 11th, 2015 - 02:27 pm - Link - Report abuse 0The nurse has the explanation that the chinese need.Its natural that the market will maintain the US ascendancy.China will revert to its previous state of dependence.The UK will continue its decline to dependence on the US!
It's the natural balance of the market,says the nurse to the doctor.Yes says the doctor,without a regular check up and medication
its the fate of Everthing.
Unless science and leadership can avert it.
The market is a concept.
Wow times must be tough times when the commies resort to pulling out old and dusty screen names.
Aug 11th, 2015 - 03:21 pm - Link - Report abuse 0Is anyone rich enough to bale out China,
Aug 11th, 2015 - 07:03 pm - Link - Report abuse 0is the world prepared or at least looking into it,
the future is not looking rosy.
Well done. It is necessary that the BRICS have a clear course of action. In that first moment the dollar should expand like never before. In a second step we need not to accept the dollar as a benchmark for trade or investment within the BRICS and their associated countries.
Aug 11th, 2015 - 11:19 pm - Link - Report abuse 0Then just wait for the economic implosion of the Western world!
https://www.youtube.com/watch?v=4svHhqa2KO4&list=FLmXPTu1f8AdGlizWNiASx2A
When is this implosion supposed to happen?
Aug 12th, 2015 - 07:48 am - Link - Report abuse 0Because I keep waiting and all I have seen is Russia's implosion and Brazil's implosion and China now seems to be joining those ranks.
The west is doing nicely thanks very much. Hardly surprising you can't see that from Brazil considering so many missed all that corruption for so long.
China lost their competitive edge in the past five years when many countries started attracting more investments, offering more advantages. Vietnam, Central America and other countries took a lot of textile industries from China, refrigerators, microwave ovens, flat screen televisions and many other things are made in Mexico for the US market, instead of China, cars are also made in Mexico for the US market, Japan, Taiwan, South Korea and other asian economies devalued their currencies too. China needs to reform quickly, their economic troubles are mounting on top of each other.
Aug 12th, 2015 - 09:04 am - Link - Report abuse 0Brasshole! Displays quite clearly the brainpower of a snail or some such dimwitted creature. Align yourselves with economically failed nations and you will end up in the same pickle.
Aug 12th, 2015 - 10:37 am - Link - Report abuse 0Brasshole please stop embarrasing yourself and your countrymen on Mercopress. But then again it gives the rest of us something to giggle at…
@10 Mexico does not produce or export anything at all other than crude oil. Some people say that Mexico exports 400, 500 billion dollars a year. But that is not true. About exports are the US companies for their headquarters in the United States. Mexico does not actually see the color of money. The role of Mexico is only enslave its people through cheap labor, and throw away any prospect of a decent future.
Aug 12th, 2015 - 11:15 am - Link - Report abuse 0Poor México.
@ 12 Brasso
Aug 12th, 2015 - 11:31 am - Link - Report abuse 0Who do you think operates the manufacturing and assembly machines/
Aliens/
No numbnuts, it's the Mexicans AND they get paid for their work AND that money goes into the Mexican economy.
Stupid boy!
@ 13 So you're telling me that this demeaning relationship has some advantage to Mexico? You are much more stupid than I thought.
Aug 12th, 2015 - 11:39 am - Link - Report abuse 0If the Mexican people were not enslaved with starvation wages, they would have found more creative and efficient ways to economically develop their society.
@ 14 Brasso
Aug 12th, 2015 - 12:30 pm - Link - Report abuse 0Thank you for the compliment of thinking me “ much more stupid than I thought”.
Coming from someone who just about has the brainpower to breathe that really make me feel better.
Without the US and EU countries the Mexicans would not have the jobs.
BTW I know that Brazil are going to make the Vento, but ONLY for the Brazil Nut market, where as Mexico make the Vento (Jetta) for many, many countries, including Germany, the home of VW!
How about that!
I hear Mexico is joining the BRICS.
Aug 12th, 2015 - 01:08 pm - Link - Report abuse 0Seems Brasileiro will only be able to say nice things about them in the future.
I just got back from visiting Mexico City for the first time. Its nicer than Buenos Aires, cleaner, people are happy, tons of new buildings, new cars, more organized. I was very surprised how nice it was.
Aug 12th, 2015 - 01:58 pm - Link - Report abuse 0Mexico is going to be taking most mfg away from China as companies pull out of that mess. No matter what China does to its currency its on its death bed. They'll never make into a middle income country. They don't know how.
Mexico will be the new China.
Serving the USA as its Mfg of choice.
Watch and see.
#17
Aug 12th, 2015 - 02:53 pm - Link - Report abuse 0How would a country of 2m km2 and a population of 121m where all the people are breaking in to the US replace a country of 10m km2 and 1.3billion people unless it was in the drivel of some imbecile who hasn't even seen the old Mexico City.What a decision maker you are.Will you ever concentrate on getting the decision correct and using all available data in those decisions?
Anyone believe in miracles?
18. Was that English? Isn't everything I told you Kidiots over the last 3 yrs coming to pass?
Aug 12th, 2015 - 03:34 pm - Link - Report abuse 0yeah it is
I stand by my predictions, USA companies will pull export mgf from China and build it up in Mexico.
Watch and see
Just like everything else I told you...
@ 19 yankeeboy
Aug 12th, 2015 - 06:13 pm - Link - Report abuse 0“USA companies will pull export mgf from China and build it up in Mexico. Watch and see”
They already are.
VW builds all N. Europe (inc. Germany), N. America and S.A. (except for local cheap end production in Brazil fitted with Flex engine, running on biofuel) 2015 model Jetta, Vento and associated names in Mexico.
Chinese production is on hold at present due to build quality issues, if they cannot overcome them expect that volume to go to Mexico.
Who would have thought it, a Jetta bought in Germany, made in Mexico and passing the VW German build expectation?
20. There's a lot of reasons that USA Mfgs are ramping up in Mexico and it will continue for at least the next decade.
Aug 12th, 2015 - 06:56 pm - Link - Report abuse 0I think the USA mfgs will stay in China but only build for the Chinese/Asian Mkt. Most of the USA's mfg imports will come from North America.
@2 Captain
Aug 12th, 2015 - 07:23 pm - Link - Report abuse 0Liked the analogy of the little boy and the dike. @3, LEPRecon goes on to say China's little boy only has 10 fingers....better than Brazil that only has a 9-fingered ex-presidential asshole......he lost his 10th years ago, but I've heard it can be found poking around Dilma's ass.
@12 brASHOLE
Wrong. Save yourself the embarrassment....just keep quiet.
@15 ChrisR
In #12 brasshole pisses out the pot. At #14 he just digs himself deeper into the shit. He obviously misses the point that the Mexicans benefit from the jobs created by the US companies, and forgets that Brazil's industrial park only expanded years ago, thanks to foreign capital.
@ 22 Jack Bauer
Aug 12th, 2015 - 10:21 pm - Link - Report abuse 0“and forgets that Brazil's industrial park only expanded years ago, thanks to foreign capital.”
Quite so.
VW build lots of cars in Brazil but mainly for local markets, I have one myself and have been very pleased with the build quality but that was made coming up to five years ago and I am not convinced the attention to detail is still there with the economic upheaval Brazil is / will be going through. Why didn't they build the Vento for all the markets (ex. China) from the new line for the Vento / Jetta instead of keeping it for Brazil only?
Probably because they know that Mexico is more forward looking and doesn't have the baggage with the US that Brazil does under DumbAss.
The outgoing Jetta / Vento car sold almost TWO million worldwide last year and the revised model is an absolute cracker, so much so that I have made my mind up to buy one for myself as long as it comes from Mexico.
The new GM Cruze is coming to the market in January 2016 and it looks a winner but GM have decided to make it for our market in a new U$D750M update to their argie plant. BIG mistake and I for one will never buy an argie assembled car.
@23 ChrisR
Aug 13th, 2015 - 05:55 pm - Link - Report abuse 0The first car I bought was a VW Beetle....2nd hand. Served me well. After that I exchanged it for an SP2, a sports car made by VW-Karmann-Ghia, but was only made for 6 years.....too expensive for the local market, however, it was good-looking car for its time, and its design was later used as the basis for the Porche 944. Since then have only had GM and Ford cars. Can't complain.
The main problem with cars in Brazil, as is with everything, are the very high taxes. I read an article a few years back, which stated that the actual production cost of the (once) popular VW Gol, (ex-factory, excluding taxes), was on average, less than 15% of the final consumer price-tag. So it's easy to understand why yhe new-vehicle market in Brazil has dropped considerably over the last two years.
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