Slipping Chinese Trade Underscores Devaluation Risks
Posted: Wed Jul 13, 2016 3:02 pm
This article was written by Idan Levitov, head analyst at anyoption.com.
Chinese policymakers have had an overwhelmingly challenging year as they attempt to meet government growth targets and prevent a mountain of debt from imploding.
One of the key areas of concern is trade, which has suffered considerably as the US dollar has climbed amid speculation of another rate hike in the pipeline. As policymakers work to offset the strength of the dollar with corresponding moves in the yuan, it has created problems in other areas, mainly capital exiting the country.
Unfortunately for the central government and the People’s Bank ... (read more)