China on Tuesday devalued its currency in a way that left it 1.9% weaker versus the U.S. dollar. The move will likely have a ripple effect through financial markets as well as in politics, as China is the world’s largest trader and the yuan is increasingly used overseas. Here are five things you need to know about Beijing’s latest move.
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Accelerate capital outflows
Artificial low currency
Artificial low currency to boost exports
Basket of currencies tracked by IMF
China World larger trader
Effects in politics
Expect further devaluations
Greater acceptance of Yuan Dollars
Increasingly use of Yuan overseas
Looking for ways to get things going
More dependable source of growth
Ripple effect in financial markets
Trading with China at a disadvantage