Chinese yuan: everything depends on what happens next
by Nils Pratley from on (#H3GY)
People's Bank of China described move as a 'one-off' but if Beijing seeks to boost imports through devaluation, it will be a painful process
China's weakening of the yuan by 1.9% is an event that, in a year's time, will be seen either as an irrelevance or a major turning point for the global economy. Everything depends on what happens next. If the tweak heralds the start of a proper devaluation to boost exports, the world economy will have to adjust to a new China. The process would be painful.
Related: China devalues yuan by 2% to boost flagging economy
Related: Why has China devalued its currency now and what impact will it have?
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