Another China open, another lower renminbi fix, and another 2 handle plunge in offshore Yuan...
The People’s Bank of China set its daily reference rate for the yuan (dark red line in the chart above) weaker than the psychological level of 6.7 per dollar for the first time since August 2017, suggesting officials are comfortable with the pace of depreciation amid a trade dispute with the US.
Offshore yuan is now at 12-month lows, down almost 9% from the March highs and collapsing at an annualized pace of around 30%!! That is a faster plunge than the 2015 post-devaluation slide (which was around a 23% annualized slide)...
It does make one wonder how long this will last before it starts to ripple across the Pacific?
Or are Chinese Yuan sellers using their newly acquired dollars to buy S&P calls?



Comments
Oil window be damned!
The world makes less sense every day. Devolution is in fast forward.
From a distance economically, a lower Chinese devaluation means that Chinese labor becomes less expensive to the US, more like a 10 to 15 years ago. Also from the Chinese governments point of view their US treasuries become more valuable.
In reply to Oil window be damned! by Anarchyteez
Unless this is intentional, they are going to start dumping treasuries to support their currency, right?
In reply to O by are we there yet
Pretty much nullifies the Trumpet's tariffs. Every country has been doing this for trade advantages. Eventually if the Yuan goes below their comfort range, they'll do what all the other banksters do. Manipulate.
In reply to Unless this is intentional,… by Mycroft Holmes IV
Bullish for BTC??
Hyper inflation for yuan?? A massive devaluation will help clear the mountains of debt and combat the Trump tarrifs.
In reply to Pretty much nullifies the… by Justin Case
USA is the biggest currency manipulator in the world. You print toilet paper backed by nothing and force it down others throat with your military. And Fed's balance sheet is the biggest.
Others just accommodate in order to survive your insanity.
End the Fed.
Exorbitant privilege. Google it.
In reply to Pretty much nullifies the… by Justin Case
Good.
Shit’s going to get even more crazy.
Read two articles today about two different areas suddenly seeing real estate not get sold until people drop the price. It's hot now. But this winter looks like it will be long and cold.
In reply to Good. by MonsterSchmuck
China is a busted flush. Can they get a refund from the Clintons?
They were guaranteed a Clinton government.
So true.
In reply to China is a busted flush. Can… by my new username
Whoopee! Here we go!
Chinvezwella
It's Chinazwella you nincompoop.
lol
In reply to Chinvezwella by max2205
Treasurys ahoy!
Faster than a $100 hooker!
Did I get that right?
Kyle Bass must be celebrating.
bwahahahahaha XD
shud get chucky schumer to tell em to appreciate their currency by 30% or else...
The RMB is not "plunging" it went from 6.2 to 6.7. It has ranged between 6.2 and 8.0 in the last decade without affecting China much at all. The economy kept growing, the middle class kept getting bigger, and everybody was better off than the year before and ten years ago.
All these Doom & Gloom peddlers with their chart porn have no idea what is going on in the real world.
Doom & Gloom peddlers. The Trumpet fan club wishing the collapse of China are the cheering gallery. They dislike any information that doesn't support their fantasy. When the opposite news on how murica is in decay and debt up to their eyeballs is boo hoo'd.
If you criticize policy, you are anti-American. That only happens in dictatorships.
“Made in China” is the backbone of retail trade which indelibly sustains household consumption in virtually all major commodity categories from clothing, footwear, hardware, electronics, toys, jewellery, household fixtures, food, TV sets, mobile phones, etc. Ask the American consumer: The list is long. “China makes 7 out of every 10 cellphones sold Worldwide, as well as 12 and a half billion pairs of shoes’ (more than 60 percent of total World production). Moreover, China produces over 90% of the World’s computers and 45 percent of shipbuilding capacity (The Atlantic, August 2013)
A large share of goods displayed in America’s shopping malls, including major brands is “Made in China”. These are hundreds of corporations that abandon the US and went where the profits could make them stinking rich. It's working well. The worker to CEO wage gap is now 375:1 and growing.
“Made in China” also dominates the production of a wide range of industrial inputs, machinery, building materials, automotive, parts and accessories, etc. not to mention the extensive sub-contracting of Chinese companies on behalf of US conglomerates.
www.Made-In-China.com
In reply to The RMB is not "plunging" it… by roddy6667
I am very happy. I will soon sell my property in Sun Valley, Idaho and buy a new place in Guizhou, Sichuan, China. Guizhou, Sichuan, China is the new Sun Valley, Idaho and I saw other retired expats that have already purchased property there. I think I will pull the trigger as soon as USD/CNY hits 7. Imagine no property tax! Of course there is no golf but I suck at golf anyway. Being from the South I can't seem to shake my NASCAR dreams while driving a golf cart which got me banned from Sun Valley. I would like to especially thank my little Chinese sugar babies that taught me how to speak the Sichuan dialect of Mandarin.
Look into the small city of Penglai. It's on the border of the Bohai Sea and the Yellow sea. Ancient port, a lot of history. Wine region. lots of great restaurants because of the influx of tourists. Homes near or on the sea are quite reasonable. We vacationed there last year. New homes were a fraction of what they are in our city of Qingdao.
In reply to I am very happy. I will… by Chairman
Congrats on that brave relocation. You'll have to adjust to a new life.
I myself moved to the Philippines a month ago. Sold my house in last June at the peak.
Best wishes and health
In reply to I am very happy. I will… by Chairman
My wife is from Chongqing and her father is from Guizhou. I lived there for a few years and really liked it but I'd be careful about buying property. It's the Chinese way but the construction quality is shit. The apartment I lived in at Chongqing University was new when I moved in but 5 years later it was falling apart. It's the same all over China. Maybe if you are going to buy and quickly resell, that would be different. I refuse to buy and will only rent but my wife completely disagrees. This video might give you some insight about what scares me.
https://www.youtube.com/watch?v=_lAoTBVTTO8
In reply to I am very happy. I will… by Chairman
Cannot declare China a currency manipulator until Oct 15th
Sell our bonds, strengthen the Dollar, buy cheap Gold.
When you consider just how destabilizing currency swings can be it is easy to see how a strong dollar could obliterate the global economy. It should not be a surprise in our current global economy that behind the curtain central bankers could be busy manipulating currencies so they trade in a narrow range that will not rock the boat.
Many market watchers have become dubious of recent market moves and over the top efforts of both governments and central bankers to keep this so-called recovery moving forward. More on the merit of this controversial opinion and the ramifications it holds in the article below.
http://Currencies Are Trading In A False Paradigm.html
This is automatic devaluation and it is caused by the US Dollar reserve high dollar policy and Trump Tariffs. A dozen currencies, not just they Yuan are losing ground on the exchanges. Many are at multi year lows. The Yuan does not have to devalue, Trump is doing it for them.
This will in fact shut off US exports and stimulate Chinese exports. So Trump once again will obtain exactly the opposite results as he intended. Trump is a very stupid man who claims to know all and knows nothing at all.
Pran the work, work the pran.
In reply to This is automatic… by CashMcCall
So are the Halloween and Christmas trinkets being loaded on ships in China even as we speak? Tariffs have been in effect for less than a week. Doesn't matter if all these valuable goods are free. Takes gas and fuel to distribute them. If China shuts off Micron chips then China is effed. No Chinese Tariffs on a Micron chip. They steal a design. Then China forbids imports. On or off no in between. US could tank China by disallowing Micron shipments to China for IP theft.
In reply to This is automatic… by CashMcCall
The Yuan is on the path of winning the currency war
Turkey is using the same strategy.