Over the weekend, China devalued its currency, citing competition from other countries that have already done so. Many saw this as a warning about President Trump’s latest tack in the trade war, but there are other implications as well.
Last week, your friendly Gold Enthusiast warned about the Race To The Bottom – well, now China has doubled down with their usual tactic of pushing just past “the limit”.
This time, “the limit” was the 7 RMB to 1 USD exchange rate that’s acted as a floor. It’s not like China is the only country devaluing their currency to try to gain a competitive edge.