David Woo is Bank of America head of global rates and currencies research; interviewed on Bloomberg Television he says on the Chinese yuan:
- On further depreciation ... "My gut tells me it could be as much as 10 percent"
- "Letting the currency go is going to be part of a package of monetary easing, let's call it Chinese quantitative easing"
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A big depreciation like this could shake equity markets again, as the recent 2% or so devaluation did. China is closed until Thursday (local time) for holidays. A big depreciation along the lines Woo is looking for would play out over many months.
