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re: I'm just curious if our China friends know why they lowered the Yuan? IB90? anybody???
Posted on 8/6/19 at 7:03 am to wutangfinancial
Posted on 8/6/19 at 7:03 am to wutangfinancial
quote:
Is pegging to the dollar manipulation?
It is when you change the pegged rate.
1
Posted on 8/6/19 at 7:13 am to Bard
If there currency is overvalued due to underlying fundamentals of the banking system is it manipulation? Notice how yesterday CNY was devalued more against other currencies more than the dollar?
Posted on 8/6/19 at 7:23 am to NC_Tigah
quote:
The danger for China is full exposure of that manipulation. Exposure of major Chinese money to a 30% drop would lead to major economic flight, despite physical/personal risks at stake. It would be devastating for China.
NC this is an excellent point that is missed by most Americans because they have spent their whole lives with the US dollar, not a volatile currency in another country.
In the Caribbean china has made a lot of infrastructure investment, insisted chinese do the labor, and then they stay. They pay through the nose and buy grocery stores, etc. To the normal person this makes no sense because they are overpaying, but if you cant do anything with yuan, and are afraid you could lose a good chunk of it, take a 20% hit on the purchase of a business and trade that currency for a hard asset.
If the true adjustment does occur, you will see people with wheel barrows headed to HK. The last jolt in 2016 china was burning through over 100 billion a month to prop up the yuan.
Posted on 8/6/19 at 7:41 am to wutangfinancial
quote:
If there currency is overvalued due to underlying fundamentals of the banking system is it manipulation?
Then why the reversal last night? In less than 24 hours the Chinese government changed the rate from 7:1 to 7.1:1 then to 6.9:1. It doesn't get more blatant than that.
quote:
Notice how yesterday CNY was devalued more against other currencies more than the dollar?
Because they are desperate to keep their manufacturing in the face of the tariff war with us.
Posted on 8/6/19 at 8:28 am to Bard
paging IB
Posted on 8/6/19 at 9:22 am to DawgCountry
Waiting to see if any of that squad is going to show up and explain the reason why China lowered it's Yuan
Posted on 8/6/19 at 9:34 am to Jjdoc
quote:
Waiting to see if any of that squad is going to show up and explain the reason why China lowered it's Yuan
the squad doesn't know what an exchange rate is let alone how pegging works (well, it appears AOC pegs her bf he looks like a massive pussy)
More importantly they love the Xi and his communist regime, they froth at the mouth for that much control over our population.
Posted on 8/6/19 at 10:39 am to wutangfinancial
Well.... He is avoiding because he knows he can not answer the question without destroying his entire message.
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