2014-02-25

Yuan Plunge On Tuesday; Anybody Watching the Yuan Price of Gold Besides 1.3 Billion Chinese?

Here is the recent 5-day move in the offshore yuan. It isn't a big move in the grand scheme of things, but it is important because it is happening before a crisis and at the behest of the PBOC.


ZeroHedge has coverage and speculation on PBOC motives here: Welcome To The Currency Wars, China (Yuan Devalues Most In 20 Years)

Here's a list of posts dealing with yuan depreciation, going backwards in time:

Andy Xie Warns of Yuan Devaluation
Andy Xie on China's Cash Crunch
More On Yuan Depreciation, China's Great Depression
Chinese Yuan Could Devalue 50% Or More
Liu Jun Luo predicts 40% devaluation of renminbi in 2013 (He has been off by about 1-2 years on his predictions.)
PBOC can't buy a buck; talk of depleted reserves is not alarmist
Chinese foreign reserves to peak in 2014? What about within the next year?
Yuan collapse goes mainstream as Financial Times discovers the yuan can drop; exchange rate hyperinflation cometh?
Albert Edwards agrees: wider yuan band can allow faster devaluation of renminbi
Chinese yuan depreciation coming soon?

Finally, how about the yuan price of gold? The world's largest importer of gold prices it in yuan.

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