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| March 24, 2017

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China's Sudden Currency Depreciation: High Anxiety and Lost Face -

In the ongoing battle between the markets and the Chinese central government, the sudden 2% devaluation of the yuan represents a colossal loss of face, not to mention a further signal of the economy’s underlying weakness. A shrinking auto sector — insiders expect retail sales to decline 15% in 2015 — is but one harbinger of choppy seas.

The People’s Bank of China has tried, unconvincingly, to dress up the largest depreciation as an attempt to correct “distortions” and a “one-off move to fix the discrepancy between the reference rate and the market’s spot rate.”

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Huffington Post

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