Chuck Chiang: Surprise Chinese devaluation not likely to affect exports

While the unexpected devaluations of the Chinese currency last week was a shock to the system for many foreign exchange traders, observers say it is unlikely that it will significantly affect Canadian exports and overall economic performance. China’s central bank surprised markets Tuesday by moving the renminbi lower by 1.9 per cent against the U.S. dollar. It was the biggest drop in the currency since 2005, when the Chinese currency was pegged to the American one. Drops were again recorded on Wednesday, falling to US$0.155 before rebounding and holding steady at $0.156 as of last Friday.

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