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China Edges Closer to IMF Seal of Approval With Yuan Move

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Fed, China and the Vulnerability of Emerging Markets

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The yuan’s surprise devaluation roiled global markets and drew scorn from Donald Trump. Still, China’s new market-driven exchange rate bolstered its bid to join the world’s most elite currency club.

As the yuan’s fall broke a rally in the Standard & Poor’s 500 Index and prompted a commodities selloff, some U.S. politicians were quick to label China a currency manipulator and raise fears of a new foreign-exchange war. China indicated the Aug. 11 move gave market forces greater say as it tries to sway an International Monetary Fund review to include the yuan alongside the dollar and euro as a global reserve currency.