4 ms·

China has usually been accused of devaluing their currency to make their exports cheaper, this is still in line with that.

• deleted 7y ago
  [deleted]
• seanmcdirmid 7y ago
  The reality for the last few years has been that China has been manipulating the RMB to make it stronger. This drop to 7 should have come in 2016 based on market forces and everyone could see the pressure in CNH trade.
  • rdtwo 7y ago
    This China has been propping up their currency in reality. They chose to let it float more and it instantly crashed. There it could go all the way to 8.4 ish if they let it fully free float.
    • seanmcdirmid 7y ago
      They float it but manipulate the price the way other countries do (buying/spending forex, interest rates, etc...). I doubt they it would crash all the way back down to 8 at this point (ah, to remember 1999 when it was 8.8), but it depends on how much money they’ve actually been printing to support their bubbly real estate market.
      • perl4ever 7y ago
        Is it really possible to change the value of a currency without constantly spending money on keeping it away from equilibrium? What I'm saying is, isn't it like extending a spring, where it's always going to go back to its natural state whenever you release it?