This Map Shows the Global Impact of China’s Dramatic Currency Devaluation | Foreign Policy
▻https://foreignpolicy.com/2015/08/13/this-map-shows-the-global-impact-of-chinas-currency-devaluation-renmi
he plunge in the value of China’s currency, the renminbi (RMB), is shaking world markets, and almost no major index is untouched by the ripple effect.
On Aug. 11, the People’s Bank of China, the country’s central bank, allowed the RMB to descend further and faster than at any time since 1994. Monetary authorities insisted the Aug. 11 drop, which caused the RMB to fall by 1.9 percent against the U.S. dollar, would be neither “persistent” nor “substantial,” but the RMB’s value has taken a further dive in subsequent days. The currency has fallen because traders on the free market appeared to believe the RMB was overvalued and that Chinese authorities were determined to let the market have a bigger say in its valuation. The move also makes Chinese exports cheaper, a competitive advantage for China that arrives at a convenient time, when domestic equities have taken a beating and the country’s massive economy shows signs of further stalling.