Yuan is Devalued to Save Weakening Chinese Economy
The surprising devaluation of the yuan—and the volatile stock market in China—could jolt investor activity further, as wealthy Chinese seek safe havens for their money. USC real estate research director Rodney Ramcharan told GlobeSt the news could bring a short-term boost to US investments, though it's too early to pinpoint any long-term trends. The "unprecedented" devaluation comes on the heels of a slowing Chinese economy, which has pushed government to act on interest rates in hopes to push more export and rebalance the exchange rate, caused by a weakening euro. While the reports could mean more money to America, the Chinese economy—officially at 7% growth annually—could be in more trouble than officials would like others to believe, Rodney says. [GS]
