Pursuits
China's Currency But Emerging-Market Peers' Problem: New Yuan
- `All now depends on what happens at 9:15 a.m.' daily in China
- Others lack bandwidth China has to respond to growth concerns
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In an echo of the Nixon administration’s missive when a depreciating U.S. currency was roiling its trading partners, the yuan may be China’s currency but it’s increasingly the problem of others -- and especially its emerging-market peers.
Smaller developing economies are struggling to cope with China’s decision to weaken the yuan, with Mexico warning of the risk of competitive devaluations and Thailand saying its exports will be affected. In Indonesia, where the central bank had seen room last month to cut borrowing costs, its governor says it’s prioritizing stability when setting rates and monitoring global developments.