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Was That Just Another Yuan Devaluation?

Published 10/14/2015, 12:10 AM

I was intrigued by a Zerhedge post yesterday evening entitled Gold Jumps As China Devalues Yuan By Most In 2 Months, "Boosts Reforms" Of Corporate Bond Bubble.

OK - Gold is up a bit, but I cannot find any reference to China devaluing the yuan again.

ZH made this claim:

"The Yuan has been fixed stronger for 8 straight days... but tonight PBOC devalues Yuan by 177pips - the most in 2 months,"

It was accompanied by this chart:

CNY Fix

I cannot find a reference to "China weakens yuan most since August 13" other than ZH. I assume Bloomberg made that statement as ZH claims "Charts: Bloomberg".

Here is a bit of perspective on the "devaluation" claim.

USD vs Yuan

USD/CNY Weekly

Is that a devaluation, or is that a reversal of a correction to a previous devaluation?

The answer of course is the latter.

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