This is a training guide for competitive devaluation for clueless Central Banksters who got their PhDs from a Cracker Jack box:
BBG: June 27, 2016
After Britain’s shock vote for secession, officials in Beijing are contending with a slumping euro and mounting economic uncertainty in Europe, just as a surging dollar raises the risk of capital outflows. That’s forcing a deviation from China’s strategy for much of this year, where authorities maintained limited gains versus the greenback to buoy confidence in the yuan’s stability
“With the fundamentals of the yuan pointing to depreciation, further pressure from Brexit is likely to pose challenges to the PBOC in terms of its policy direction
Faster declines risk reigniting a vicious cycle where expectations for further weakness quicken capital outflows
“The second round of capital outflows has started...You can’t underestimate the impact."
Fast forward to today:
The Bank of England just announced further easing which pounded Sterling and the Euro lower since they are now trading in tandem. At the same time, the Yen strengthened on the news. In other words, further inevitable declines in GBP will be the gift that keeps on giving for Japan...
The Yen and Yuan are going in opposite directions, accelerating this implosion:
