The consequences of China's currency devaluation and what it means

The consequences of China's currency devaluation and what it means


Here are the highlights:

• Chinese authorities devalued the Yuan, leading to a depreciation of ~4% against the USD 
• Robust capacity utilization, muted global demand, stronger Yuan - concerns for Chinese exports 
• Recent export data for China marked a contraction of around 8% 
• Weaker Yuan to imply export competitiveness and aid export performance 
• Market determined orientation to help RMB acquire SDR inclusion 
• Currency depreciation in India expected to be contained 
• Restricted direct corporate exposure & limited trade exposure with China to limit INR depreciation

Hoping the economic dynamics are in line with your financial requirement.


Happy Investing