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You’ve got hand it those Chinese. For months it’s been all smiles and sunshine on the yuan with no reason to fall approaching the IMF decision on the SDR basket then the moment it’s in and it’s ‘bang’:
It’s now down 5.5% from the peak and moving fast into new territory.
Moreover, the PBOC virtually declared currency war on Friday night:
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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.