MercoPress. South Atlantic News Agency
China's devaluation triggers fears of a new round of currency wars
China's shock 2% devaluation of the Yuan pushed the dollar higher and raised the prospect of a new round of currency wars, just as Greece reached a new deal to contain its debt crisis. Stocks fell in Asia and Europe as investors worried about the implications of a move designed to support China's slowing economy and exports. Read full article
Comments
Disclaimer & comment rulesOne off depreciation? Well that was yesterday what about the one today?
Aug 12th, 2015 - 04:00 pm - Link - Report abuse 0I told everyone here when the idiots in Argentina/Venezuela/Brazil added the Yuan to their “reserves” it would be a race to the bottom on devaluations. The last one to devalue is holding the bag.
China would have to value 20%+ to spark export growth.
They may do it
The charts are scary for them
Told ya...
The Yuan is the currency world market leader. So we can safely say that the problem is not China, as all currencies are losing value against the dollar, the problem is the United States that are in a real mess. And they have not increased the interest ...
Aug 12th, 2015 - 04:13 pm - Link - Report abuse 0Continuing at this rate the US will be the first country with a bankrupt banking system and the most valuable currency of all.
The dollar is a green slime bubble that asphyxia and kill Westerners!
I wasn't aware that in Brasil there was such an erudite economist as Brasileiro. Or am I mistaken?
Aug 12th, 2015 - 04:27 pm - Link - Report abuse 0Hey Brasil Nut, you gotta thata wronga way round. Yuan is toilet paper likea Real Rouble Peso Rupee etc.. Go down toilet pretty dam quick
Aug 12th, 2015 - 04:47 pm - Link - Report abuse 0What a mistaka to maka!
4. Like Dany, Bras thinks when their money is X+ to the U$ he's richer.
Aug 12th, 2015 - 05:24 pm - Link - Report abuse 0And they wonder why their economies collapse time and again.
Will the POUND get stronger..
Aug 12th, 2015 - 05:38 pm - Link - Report abuse 0The pound is just about right at the moment, exporters are beginning to experience problems.
Aug 12th, 2015 - 06:21 pm - Link - Report abuse 0Remember China the Yuan in your pocket still buys what it did if you buy Chinese. The Chinese are attempting to solve their unemployment problem by exporting its citizens to Bana Republics like Argenchina etc
Can only end in tears for Argenchina
The yellow peril has struck again...lol
Aug 12th, 2015 - 06:37 pm - Link - Report abuse 0The Rg Gov't is screeching to anyone who will listen that the Yuan devaluation will have no effect in Argentina.
Aug 12th, 2015 - 08:24 pm - Link - Report abuse 0Translation
It will have a huge effect in Argentina
Soy is now unprofitable
Which means Arg won't have any U$ to buy fuel or car imports.
And their biggest trading partner Brazil won't either.
:)
The Australian dollar is dropping like a stone at the moment.
Aug 12th, 2015 - 09:33 pm - Link - Report abuse 0Which is perfect.
The drop over the past year is exactly what our economy needs to continue growing. Thank God we don't have a government that tries to interfere. As our many of our primary exports are denominated in US$, there will be an increase in income to help offset declining prices, not to mention we become more competitive and imports more expensive.
Which is why we hit 24 years of continuous growth next month. On record to break the record of 26.5 years.
It's why I laugh at Brasileiro and Think when they crow about their boom that lasted less than a decade.
@9... Everything is OK in Argentina .. according to this peice in the Kirchner Bugle http://www.buenosairesherald.com/article/196275/defence-ministers-daughter-appointed-banco-nación-head
Aug 12th, 2015 - 11:34 pm - Link - Report abuse 0Nothing like a bit of good old nepotism ... and a commo to boot....
Don't panic!!..Don't panic!!!!!!!!
So China has a picture of Chairman Mao on it's currency? Definitely increases it's value as toilet paper IMO...
Aug 13th, 2015 - 05:23 am - Link - Report abuse 010. I wouldn't be counting your chickens just yet. Australia is tied to China and China is crashing. Your economy has been overheated for a very long time. It is due for an adjustment.
Aug 13th, 2015 - 02:24 pm - Link - Report abuse 0The devaluation will make the Chinese crap cheaper for the poor bastards whose countries ignored the risk to their own manufacturing centres and now have nada (like Britain).
Aug 13th, 2015 - 05:15 pm - Link - Report abuse 0And that's about it until China implodes, we are not there yet.
Another big bang in China last night.
Aug 13th, 2015 - 07:20 pm - Link - Report abuse 0Yankeeboy
Aug 13th, 2015 - 10:42 pm - Link - Report abuse 0Yes Australia is due for an adjustment. But it is hardly overheating. Real estate in only some cities could be considered overheated, but not the economy.
Indeed it has been going through an adjustment for several years. The RBA has been consistently talking down the dollar to cushion the drop in resource exports and stimulate other sectors of the economy. This has started working.
Unemployment hasn't soared. Inflation is low. And growth is below trend but still positive.
There is an assumption that mining is a huge industry here and disproportionately affects all of our economy. However it only disproportionately affects exports. Most of the jobs that would be lost have been lost. Most of the investment that would dry up has dried up.
While China takes 30% of our exports, this has already been dropping for 2 years even while export growth continues. It won't suddenly drop to zero. Even Japan who has been in recession for nearly 2 decades still takes 15% of our exports.
China is slowly deflating and not crashing. Thankfully because the entire world would feel the crash. I estimate China's export share to slowly drop to around 20% over the next 5 years while places like Vietnam (who are currently importing 35% more from us YoY), Malaysia and maybe even India start to erode China's growth model. We are primed to supply these countries with raw materials and energy. Our exports grew 2.5% from 2013 to 2014 but dropped 3.4% to China. So that is 5.9% growth to countries elsewhere which is exactly what we did after Japan crashed and while our government is still enamoured with the China growth story it shows that our economy is still resilient enough to change anyway.
No country is immune from recessions. My prediction is that Australia will have a recession. And it will be bad. But it won't happen in the next 2-3 years.
16. China is crashing. It will not make it into a middle income country in our lifetimes. It may not even survive as a 'federal” country in the next decade. The provinces are in tough shape.
Aug 14th, 2015 - 07:57 pm - Link - Report abuse 0Australia will always be protected and promoted by the USA. It should be fine in the long run.
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