Emailed 11th August 2015
Okay – any bets as to who else will devalue?
Currency wars really heating up now – the 1.9 per cent cut to the value of the yuan against the USD – and the reason?
Same as Canada – to combat slumping exports.
My assumption is that Vietnam will now have to make an adjustment – why – Chinese biggest competitor.
And please remember – if the currency wars do not play out as each country is planning – then expect protectionism to rear its ugly head.
Tariffs on imports – protect industry and agriculture.
A la’ Indonesia – yes they have increased tariffs on all consumer goods. The government is struggling and their hopes of increasing tax revenue. Regret that will not be the case.
Please also note that this is not even the start of what is to come – what has been happening to date has been mild – wait till it warms up – process gathers momentum and watch out below…