2. What is it?
01-06-2016 Yuan devaluation and it impact 2
People’s bank
of China
(PBOC)
devalues
YUAN by 1.9%
with respect to
US dollars.
Devaluation"
means official
lowering of the
value of a
country's
currency withi
n a fixed
exchange rate
system.
It is a planned
move to
qualify YUAN
for IMF’s
special drawn
rights (SDR’s).
3. Why?
01-06-2016 Yuan devaluation and it impact 3
To qualify for IMF’s
special drawn rights
(SDR’s)
To boost the export of
China
To re-launch YUAN as a
more market-oriented
currency
4. IMPACT ON CHINESE
ECONOMY
01-06-2016 Yuan devaluation and it impact 4
Expected growth in exports
since it had reduced by
8.3%
Investments to hit a new
low.
Stock markets are in for
a bumpy ride.
6. IMPACT ON GLOBAL
ECONOMY
01-06-2016 Yuan devaluation and it impact 6
It gives the Federal Reserve another
reason to delay raising interest rates.
The falling YUAN may force other
countries to devalue their
currencies.May slow down Latin American
economies that are dependent on
China.
Brazilian economy to have a huge
negative impact.
7. Impact on indian economy
01-06-2016 Yuan devaluation and it impact 7
Yuan devaluation poses
threat to engineering
exports
An adverse impact on
India’s textile industry
Cheaper imports from china
U r accountable for all dose dollar claims circulating thru the system and when theres arush in the market it can result in inflation so sharing that brden is what d intrnatl community wud want
