Interview with Mark Mobius, invester emerging markets and Executive Chairman of the Templeton Emerging Markets Team
After the Chinese stockmarket has gone through a volatile month in July, the developments on the Chinese currency market are dominating the news in August. On August the 11th the People's Bank of China (PBOC) has presented a new change which caused the Yuan to devaluate to the lowest level compared to the USD for the past 3 years. A new change was implemented the next day which caused the Chinese Yuan dropped further to 6,33 per US Dollar. These currency devaluations were a result of the decreasing export reports in July. This gave people reason to believe that the devaluation implemented by the PBOC was simply a tool used by the Chinese government in an attempt to boost the export numbers, as a weaker currency will cause the Chinese goods to be more interesting to the rest of the world.
The recent developments on the Chinese stock- and currency market have caused to create more attention around the policy decisions made by the Chinese government. The decrease of the currency (officially named the Renminbi or RMB) has caused currency depreciations in several other countries combined with negative effects on their stock markets. All this attention shows that China is becoming a big player in the world economy.
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