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*rolls eyes. To look at whether or not the yuan is being devalued stop looking at it vs just the dollar but against all other currencies. The trade war is push
by KaoruAoiShiho 7y ago
*rolls eyes.
To look at whether or not the yuan is being devalued stop looking at it vs just the dollar but against all other currencies. The trade war is pushing up the dollar significantly.
Today's value vs Aug 19th 2018.
Yuan vs Euro 0.13 vs 0.13
Yuan vs Pound sterling 0.11 vs 0.12
Yuan vs Yen 15.11 vs 16.06
Yuan vs Indian Rupee 10.15 vs 10.14
TLDR: Yuan is basically the same, rather it's the dollar that's gaining.
- JumpCrisscross 7y ago> against all other currencies The correct method is a trade-weighted basket of currencies. So if you trade 90% with India and 10% with Japan, you weight the moves accordingly. By this method, the renmimbi has devalued. Just not by as much as it appears by just watching the dollar. More critically, the Chinese government fixes the renmimbi-dollar trading range. This gives this pair (among others) special status over others.
- KaoruAoiShiho 7y agoThere are a number of measures. Looking at a chart you can see the trend yourself instead of taking it from OP. https://imgur.com/a/5sZRJbW https://imgur.com/a/5sZRJbW
- JumpCrisscross 7y agoREER is a domestically-scoped tool. It answers “should the currency move,” not “has it been pushed?”