Will China devalue the yuan?


As Chris Dillow pointed out last week, world trade has collapsed. Industrial production in, and exports from, Asian countries such as Korea, Taiwan and Japan have fallen by mind-boggling amounts, causing sharp slide in currencies like the Won and the Taiwanese dollar. This in turn has made Chinese exports more expensive in relative terms. At the same time, officials in the incoming US administration have protested that the Chinese currency, the yuan, is being deliberately manipulated. What will China do - devalue, and incur the wrath of Washington, or hold firm, and risk social unrest as economic growth slows down. Two experts debate whether China will devalue or not.

To continue reading, register today

to enjoy limited access to the following:

  • Daily trading news
  • Funds coverage
  • Features on big investment themes
  • Comprehensive companies coverage
  • Economic analysis
Subscribe to Investors Chronicle

Related topics

Subscribe today

Full access for just £3.37 a week:

• Tips and recommendations - to beat the market 
• Portfolio clinic & Mr Bearbull - build a well-planned portfolio 
• Expert tools - track and manage investments effortlessly
• Plus free delivery to your home or office

Subscribe Now