China’s yuan dropped 2.9% for the quarter, the worst sell off on record–dating back to when they unified the market rates in 1994. The deviant currency of China, most readily used to manipulate advantages over trading competitors, is at 5 year lows.
China is dealing with all sorts of capital flight problems, which has forced them to impose a sundry of regulations designed to dissuade and/or stop citizens from moving cash out of the country.
Related: Goldman warned that metal investors are shaking in their boots about a potential drop in the exchange rate.
“We see a rising risk that capital outflows could pick up again causing negative headlines and adding to the fragility of current market sentiment,” said Allan von Mehren, Copenhagan-based chief analyst at Danske Bank A/S. “We expect the depreciation pressure on the Chinese currency to continue over the coming years.”
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