UK press on Beijing considering yuan devaluation – “as a hidden weapon” in trade war

The UK Telegraph has a piece up over the weekend on the CNY and a potential devaluation from the PBOC

  • Analysts believe that Beijing is mulling a devaluation of the Chinese yuan as a hidden weapon in its trade war arsenal. 
Note that it only cites analysts, it does not purport to offer any inside ‘sources’ and such on thinking at the People’s Bank of China. The
article does not appear to be gated and is a good background read on the CNY, its past devaluation and the impact of that. But its not offering anything beyond.

A few months ago as the trade war murmuring started I raised the possibility of a CNY devaluation, but pretty much immediately the PBOC began ramping its value up against the USD and that has continued:

What has changed? Well, there is the twice yearly US Treasury currency manipulator list just released (China not named as a manipulator …. no country was, just a few on the ‘watchlist’). The next report is not for 6 months, so if China is looking for a window of opportunity I suppose its been presented ….  

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