FX expert Philippe Gelis, CEO and co-founder Kantox believes that China’s decision to de-value yuan indicates the nation’s economy is reaching desperation point.
“China’s rapid U-turn in monetary policy highlights that the nation’s economic situation is reaching desperation point. Despite previously stating that the country would let the yuan float, China has instead opted for a clear currency war.
“Developing the next reserve currency is no longer the key priority. Re-establishing itself as a global superpower has taken precedence, and a quick-fix currency devaluation has been prioritised as a short term tactic – even if it does mean upsetting other global powers.
“It’s unlikely that such a move will be a one-off; the war for global economic domination is only just beginning.”