Keith Underwood 5 Comments

China Stirs up the Asian Currency Depreciation Pot

More government intervention by the Chinese (sound familiar?) and this time it’s in their currency rather than their equity market. The PBC today released on it’s website a stunning literacy of how it’s going to improve the central parity rate of the RMB against the US dollar. It has to be a language translation issue at play here because the information provided is little more than explaining what took place after the depreciation. It’s like they were providing color commentary on what took place and laying the blame on the strong US dollar and impending interest rate hike by the FED. I’m no China expert but I think that there are several key takeaways from this abrupt departure from the norm.

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