China Devalues Its Currency

[scott h]

Ok you financial wizards, China just devalued its currency (what the news said anyway) does this mean a stronger exchange rate for us or worse?

 

I am just a grunt, high finance is way beyond me :1 (103):

[Gerald Glatt]

I am just a grunt, high finance is way beyond me

 

Means there 'stuff' should be 2% less, or not.  I majored in economics.

[Jack Peterson]

Cash Flow problem? Usually is! :rolleyes: when a country devalues. :unsure:

 

JP :tiphat:

Morning all. :morning1:  

[scott h]

Dollar going up or down u guess?

[frosty (chris)]

China has just again devalued it's yuan, meaning their economy is in trouble, US $ will be on the up and up, imports will be cheaper, something the US doesn't want right now, what happens now, just get the dart board out :1 (103):. The forex market is in a tail spin, would be ok to if you are on the right side of the market, some currencies have fallen over 2cents since mid yesterday and that is a really big move.

Edited August 12, 2015 by frosty (chris)

[mogo51]

Cash Flow problem? Usually is! :rolleyes: when a country devalues. :unsure:

 

JP :tiphat:

Morning all. :morning1:

 

 

 

 

 

Not sure that is 100% correct Jack, not an economist by any stretch, but as I understand it, usually means that a country is trying to make its exports more 

competitive, after a period of inflation often, in their country.  By devaluing the currency, their porducts become cheaper for other countries to buy. this increases the export figures and also assists in balancing their trade ratio ie. imports vs. exports.  That is what I have gathered over the years, but maybe there are  some currency flow issues with China, but I do not think so.

If that was the case, the US  would hope they don't start calling in any loans they owe to China!

Edited August 12, 2015 by Jollygoodfellow

[Jack Peterson]

If that was the case, the US  would hope they don't start calling in any loans they owe to China!

 

 

I bet they Hope they Don't! but I bet the the US would do it if the boot was on the other foot.

 

JP :tiphat:

[Dave Hounddriver]

I can tell you from a Canadian point of view that our Canadian government has frequently tinkered with devaluing the CDN$ over the years and it was not because the economy was in trouble.  That kind of devaluation happens all by its own self  :1 (103):

 

When the government does it on purpose it is to keep the US dollar valued higher so the Americans will continue to pour money into the country, thinking they are getting more bang for their bucks.  Its smoke and mirrors.

[DavidK]

Unless you're a frequent buyer/seller of the Yuan I can't see it making much difference. If you import into or export from China it might. Also should keep the price down on all those gadgets and others "Made in China".

[mogo51]

I can tell you from a Canadian point of view that our Canadian government has frequently tinkered with devaluing the CDN$ over the years and it was not because the economy was in trouble.  That kind of devaluation happens all by its own self  :1 (103):

 

When the government does it on purpose it is to keep the US dollar valued higher so the Americans will continue to pour money into the country, thinking they are getting more bang for their bucks.  Its smoke and mirrors.

 

 

Yes Dave, have long ago given up on trying to understand global economics.  From what I see, the big boys just manipulate the currencies so they make a 

steady and large earn.!!!