China devalues currency in SDR push

The Chinese central bank devalues the renminbi as it steps up its campaign to promote it to reserve currency status.

China shocked global markets out of their summer somnolence on Tuesday when it devalued its currency by almost 2% against the US dollar in an effort to increase its reserve currency status and boost sluggish exports.

In what ranked as the largest one-off depreciation in two decades, the People’s Bank of China PBOC adjusted the central parity rate, also known as the daily fixing, by 1.86% from Rmb6.1162 to Rmb6.2298.

The central bank described the change as a “one-time adjustment” and said it wanted the market to play a bigger role determining the currency’s value in future. As such, the PBOC told market makers they should now...

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