Currency chaos: The currency symbol for yuan and US dollar is displayed at a currency exchange store in Hong Kong. China’s decision to weaken its currency on Aug 11 brought the yuan down by 2.5 against the US dollar in the third quarter, making it more expensive for people in the nation to buy goods from their trading partners in Asia. — Bloomberg
SINGAPORE: Pacific Investment Management Co (Pimco) said the yuan is poised to weaken another 7%, after the central bank devalued the currency in August in a move that sent emerging-market assets tumbling.
The People’s Bank of China (PBoC) will also cut deposit rates in the nation by 75 basis points and reduce the required reserve ratio for banks by 200 basis points, according to Pimco.
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