Profile image
By John Rolls (Reporter)
Contributor profile | More stories
Story Views
Now:
Last Hour:
Last 24 Hours:
Total:

The Yuan Is Crashing

% of readers think this story is Fact. Add your two cents.


By Tyler Durden / ZeroHedge

According to CNBC, Trump is currently meeting with his trade aides…

  • TRUMP MEETING WITH HIS TRADE AIDES NOW, CNBC REPORTS

… to decide what additional measures and tariffs to declare against China, and if there is one currency that Trump’s economic team is currently keeping an eye on it is China’s yuan.

What said team is seeing is nothing short of carnage, because – somewhat paradoxically – even as the Bloomberg dollar index is plunging ever since Trump unleashed his tirade targeting China for daring to retaliate to US tariffs, the offshore yuan is plunging even more, tumbling below 7.13 – a new 11.5 year low – in what the White House can correctly interpret as official intervention to weaken the currency which should be rising against the greenback, yet is doing precisely the opposite.

Which brings us to the only possible question: when will the US intervene in the FX market, and how much offshore Yuan will the US Treasury buy. As a reminder, the US could deploy up to $146 billion in yuan purchasing power if intervention was launched, the combination of the Treasury’s Exchange Stabilization Fund and the central bank’s firepower.

“If an intervention does go ahead, I think the US would probably target specific currencies such as the renminbi, rather than attempt to achieve broad-based dollar weakness,” said Stephen Oh, global head of credit and fixed income at PineBridge Capital, which manages $97bn of assets.

The only question then is how will China respond. And luckily, we wrote an article on precisely that last night, and noted that top Chinese bankers in London warned that the “drama” that would follow any US attempt to weaken the dollar by intervening in renminbi markets — a move that would be seen by Beijing as a “political act.” A hostile “political act.”

Yet such an act looks increasingly likely after Trump has repeatedly taken aim at China (and Europe) both on Twitter and elsewhere for “playing currency games” as the trade war has morphed into a currency war, if not a full-blown one yet.

* *  *

Hhow likely is that the US and China would launch all out currency war at each other in the FX market?

Last month US Treasury secretary Steven Mnuchin said there was no change “as of now” to America’s currency policy but added that a different stance could be considered in the future. To be sure, investors are growing more cautious and are increasingly unwilling to short the yuan over fears of a surprise intervention by the US. One head of a currency trading platform that serves US hedge funds told the FT that his clients have begun to stay away. “They don’t want to be on the wrong side of the Fed.” Something tells us that neither does China.

https://www.zerohedge.com/news/2019-08-23/yuan-crashing

***Support BeforeItsNews by trying APeX (far superior to colloidal silver) or any of ourfour other great health products at www.mitocopper.com ***

Support BeforeitsNews by trying our natural health products! Join our affiliate program
Order by Phone at 888-809-8385 or online at www.mitocopper.com


Get our Free Ebook, "Suppressed Health Secrets"  with  Natural Cures THEY don't want you to know!

APeX - Far superior to colloidal silver!  Destroys Viruses, Bacteria, Pathogens with Oxygen plus Silver!Supreme Fulvic - Nature's most important supplement! Vivid Dreams again!
Ultimate Curcumin - Natural pain relief, reduce inflammation and so much more.
MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen!  
Organic Hemp Extract (CBD) - Full Spectrum high CBD (3300mg) hemp extract eases stiff joints, relieves stress and more!
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.

Smart Meter Cover -  Reduces Smart Meter radiation by 96%!  (See Video)


FINAL WARNING!   Diseases are EXPLODING!  Watch this Video about APeX and You'll THROW AWAY Your Colloidal Silver!   APeX destroys Viruses, Bacteria and other Pathogens with the power of Oxygen PLUS Silver!  Nobody else has a product like THIS!   See why the inventor hasn't been sick in 16 years and why you'll never hear about it on the FAKE NEWS!  Get some now and tell your friends about it too so we can reach more people!  

APeX Interview - Superior to Colloidal Silver from Lee Canady on Vimeo.

Learn about APeX Here and Get the 50 Page Report in PDF format.   Call us at 888-809-8385 to order by phone.

Report abuse

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Total 1 comment
  • b4

    trump has told xi to go f himself–trump is too much!!! love it

SignUp

Login

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.