– China Currency Plunges Most In Over 5 Years, Biggest Weekly Loss Ever: Yuan Carry Traders Crushed (ZeroHedge, Feb 27, 2014):
And just like that the Chinese yuan devaluation has shifted away from the merely “orderly.”
In the past few hours of trading, China, which as we reported two days ago has started intervening aggressively in the Yuan market (for the reasons why, read this), has seen its currency crash by nearly 0.9%, which may not seem like much, but is in fact the largest drop since December of 2008, and at last check was trading at around 6.18, even as the PBOC fixed the CNY reference rate 0.02% higher from the last official close to 6.1214, erasing pivot support point at 6.1346 and 6.1408. Naturally this means that the obverse, the CNYUSD, has crashed to as low as 0.1620. Should this move sustain without reverting, this will be the biggest weekly loss ever!
1 thought on “China Currency Plunges Most In Over 5 Years, Biggest Weekly Loss Ever: Yuan Carry Traders Crushed”
I have read their debt ratio is 5-12X its GDP.
Even their GDP is strangely computed……they claim everything they build as GDP, such as their ghost towns, regardless they are empty of occupants.
They built the world’s largest building, opened a few months ago. It looks magnificent, complete with artificial sea shore……over 100 miles away from the ocean. Only one problem……it is virtually empty. The Chinese citizens cannot afford to live or work in these structures, so they set there……..until they rot. They claim all the expense as GDP. It makes no sense at all.
They have taken Enron accounting to new levels. No wonder they are in trouble.
Russia is reasserting itself as a world power, China thought they would be it. They don’t have the experience, Russia does. Communist China is corrupt and full of crony capitalism. The only people who earn money are those with government contracts (sound familiar?), everyone else suffers with sinking wages and high unemployment.
China made a big mistake….it adopted all the policies of the west, and as a result, are constructed on smoke and mirrors. They have no Vladimir Putin to show them what to do………
When I was a young woman, I remember someone once telling me that he was certain I would achieve and be whatever I wanted, but that the repetition of everything would drive me crazy.
I am beginning to see what he meant. The west has moved on a linear scale, shooting upward or down. The problem is the fact mankind does move in circles, and it is indeed repetitious.
Man isn’t nearly as creative as he thinks. Look what has happened to the USA. We may as well have stayed under king George……at least we would have a parliamentary system instead of a false two party corporate oligarchy. It is now worse for human rights than it was in 1775.