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re: DOW falls 1000 points after opening bell
Posted on 8/25/15 at 9:47 am to Duke
Posted on 8/25/15 at 9:47 am to Duke
Their currency was extremely overvalued. They want it to be on par with the US dollar. With that being said, most economists believe it was hurting their growth in exports. By devaluing the currency, it makes it cheaper/more likely to hit their export growth target.
With that said, there are multiple viewpoints as to what specifically happened, but this is the one I tend to agree with.
With that said, there are multiple viewpoints as to what specifically happened, but this is the one I tend to agree with.
1
Posted on 8/25/15 at 9:54 am to Kamikaze25
quote:
Their currency was extremely overvalued. They want it to be on par with the US dollar. With that being said, most economists believe it was hurting their growth in exports. By devaluing the currency, it makes it cheaper/more likely to hit their export growth target.
Gotcha.
I wonder how much they should let their currency devalue as China is trying to transition from an export based economy to a consumer based one. China has a hell of a needle to thread before their one child demographics time bomb blows up.
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