In a world that is overdependant on the Chinese market especially the commodity market,the fall in Yuan is a critical issue to reckon with. China for the first time in two years devalues its currency.
The devaluation has more to do with the dynamics of global currency markets and to help Chinese exporters make their goods cheaper on the world market.A 2% devaluation simply keeps the yuan a little more in line with trading partners’ currencies
The People's Bank of China allowed the yuan to depreciate by nearly 2% against the U.S. dollar, the largest devaluation in two decades. China described the move as a one-off piece of market-reform, but many see it as a way to boost exporters and its cooling economy.
The move rippled through global markets and slammed stocks of many companies that sell goods in China, though some companies are set to benefit. The move also affected the exchange rates of several global currencies.
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