Monday, August 10, 2015

Financial Media Are Stupid

Wherein the claim is made:
Indeed, the Chinese currency, also known as the renminbi, has been remarkably steady over the past month despite the huge selloff in China’s stock market and a spate of disappointing economic data.
Market strategists, including Simon Derrick, chief currency strategist at BNY Mellon, and Marc Chandler, head currency strategist at Brown Brothers Harriman, said that’s because China’s policy makers have effectively re-pegged the yuan.
“When I look at the dollar-renminbi right now, that looks like a fixed exchange rate again. They’ve re-pegged it,” Chandler said. 

And now a few hours later:

Wherein we learn:

The People's Bank of China sets a mid-point for yuan trading against the US dollar each day. The rate has remained fairly stable since March but Tuesday's devaluing is the largest on record.


Better than a "slumdog" call. 

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