CNY vs USD and AUD vs USD – What are the likely effects of this? Bloomberg has a lot of articles here.
Chinese exports will be cheaper –
But China still has to buy raw materials mostly priced in US$.
Is there a move already I wonder for China to pay for its imports in other currencies or barter?
Will not help China build their oil stockpile. WTI crude price (bottom right at Kitco) has been little affected at around $43.xx over the days of the Yuan moves. With Iran poised to enter the oil market more openly – IMHO that has to be bearish for oil.
Coal imports will be more expensive.
Can we assume the PBOC will fiddle more with the exchange rate to achieve their aims – IMHO that is the signal.
Will not help the US “recovery”.
Could it be the start of competitive devaluations?
I see gold had a positive night in the face of gold becoming more expensive in Yuan.
Probably would not have happened BEFORE China sucked up most of the worlds physical reserves of gold at prices the Fed & their mates manipulated down to protect the $US.
When communist party manages; they manage.
China devalues its currency a 3rd time
www.dailytelegraph.com.au/business/breaking-news/china-devalues-its-currency-a-3rd-time/story-fni0xqe3-1227481730499