Silver as an investment

China’s Yuan Is Now Plunging Faster Than During 2015’s Devaluation

Another China open, another lower renminbi fix, and another 2 handle plunge in offshore Yuan…

The People’s Bank of China set its daily reference rate for the yuan (dark red line in the chart above) weaker than the psychological level of 6.7 per dollar for the first time since August 2017, suggesting officials are comfortable with the pace of depreciation amid a trade dispute with the US.

Offshore yuan is now at 12-month lows, down almost 9% from the March highs and collapsing at an annualized pace of around 30%!! That is a faster plunge than the 2015 post-devaluation slide (which was around a 23% annualized slide)…

 

It does make one wonder how long this will last before it starts to ripple across the Pacific?

Or are Chinese Yuan sellers using their newly acquired dollars to buy S&P calls?