For years, China has kept its currency from strengthening too much against the dollar. Now, it might need to arrest a slide in the value of the yuan to prevent strain in the country's financial system.
A sharp depreciation could send more money fleeing the country, affecting domestic property and debt markets. It could also make it harder for Chinese businesses to repay U.S. dollar debt.
Today in 2015, the end of QE, a strengthening dollar and an anticipated rise in US interest rates could wreak havoc in developing economies
Since 2009, trillions of dollars hot off the printing press or borrowed at near zero rates have been flooding into the global South and East. But today’s monetary tightening is already leading to an exodus of hot money that is destabilizing these countries, with the effect of keeping the United States’ rivals in the “emerging” world down.
Road side report: Chinese stock market goes parabolic due to intense currency war .....
The first state visit by President Xi Jinping of China to the United States will take place in September, the state-run Xinhua news agency reported Wednesday.
The report came after Mr. Xi and President Obama spoke by telephone on Wednesday morning (02/11/2015), which was Tuesday in Washington. They discussed a wide range of issues, including climate change, Iran’snuclear program and China’s currency policy.
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