Shanghai Securities News, but the headline coming via Bloomberg
More:
Article in Shanghai Securities News from a researcher at the State Information Centre
- China should consider another one-off devaluation to keep the currency stable
- Should increase flexibility for the exchange rate
Extra detail from Bloomberg.
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I haven't read the full article but just on those headlines it doesn't make a lot of sense. A one-off devaluation would not make it stable, it'd make it devalued.
And besides, it is stable! Check out the yuan against its basket:
That's pretty stable. its against the USD that its devaluing. And the USD is appreciating against other currencies, not just the yuan (its lagging against the yuan!)
Anyway, there's the headline etc.
I'll have more on the yuan basket coming up. The basket went from 13 currencies to 24 on January 1.
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ps. Cast your mind back to the previous 'one-off' devaluation, which led to a run of broad-based risk aversion
