by joeyrideout on 8/22/2019, 8:40:24 PM
by hourislate on 8/22/2019, 8:35:38 PM
The Chinese are doing everything they can to make sure US tariffs don't affect US consumers.
And discourage factory work to leave for other countries (Vietnam, Mexico, Taiwan, Thailand, etc).
by tuxpenguine on 8/22/2019, 10:04:56 PM
My uneducated guess is that Yuan is still over valued. Based on the personal anecdotes around me, I can see that the government is trying everything to tighten the capital outflow. That's not the case for the reverse direction though.
Everyone in Beijing or Shanghai owning a small condo with 70 lease is literally sitting on a property of nominal value of millions of US dollars. How can that value be justified? People are willing to take even 15% discount to get that assets out of the country.
by jonathankoren on 8/22/2019, 9:58:16 PM
I don't understand this link. It's a trading quote, with no text and an irrelevant embedded video.
A much better link would be something that talks about this close. For instance https://www.cbc.ca/news/business/chinese-yuan-falls-to-11-ye...
I'm still confused by the coverage, since it's trading at 7 CNY to 1 USD. That's still higher than the 52 week low. Also it's higher on the chart on the right which shows the 5 year closes. I'm very confused, since coverage doesn't jive with either chart.
by samfisher83 on 8/22/2019, 8:25:11 PM
The US is running up a huge deficit and lowering rates yet the dollar is getting stronger. It is kind of strange.
by pbalau on 8/22/2019, 9:00:41 PM
GBP: "hold my pint"
Real Vision has some great commentary on the Yuan and its implications. Most recently: https://www.youtube.com/watch?v=1ssFICVFH40
The big risk from my point of view is that currency weakness tends to spook international investment capital who is exposed to the local currency, triggering selloffs as capital flees, exacerbating the problem.