Ahead of the Curve provides you with analysis and insight into today's global financial markets. The latest news and views from global stock, bond, commodity and FOREX markets are discussed. Rajveer Rawlin received his MBA in finance from the Cardiff Metropolitan University, Wales, UK. He is an avid market watcher having followed capital markets in the US and India since 1993. His research interests includes areas of Capital Markets, Banking, Investment Analysis and Portfolio Management and has over 20 years of experience in the above areas covering the US and Indian Markets. He has several publications in the above areas. The views expressed here are his own and should not be construed as advice to buy or sell securities.

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Thursday, 13 August 2015

Interesting Perspective on the Chinese Yuan Devaluation

While the Chinese Yuan devaluation has taken the global markets by storm this week, it certainly is not the first of its kind and pales in comparison to the 50% devaluation in the Yuan in 1994. A very interesting chart from dailyfx below provides insight into the fluctuations in the Yuan.
It also appears that the #Yuan is yet to catch up with the deteriorating macro economic back drop in China as per the next chart from dailyfx and the current devaluation may not help matters in the long term.
nyse What Does Yuan's Devaluation Mean for Chinese and Global Markets?

Regardless the contagion effect on the  #BRIC and other emerging economies can't be ignored as the threat of cheap Chinese exports flooding the market place is alive and well in the near term. The mere prospect of this has sent some BRIC currencies and stock markets sharply lower and this is likely to continue in the short term:
iShares, Inc. - iShares MSCI Brazil Capped ETF (EWZ)

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