China: Something Big, Something Ugly

Hundred Yuan Bundles
Hundred Yuan Bundles

For the third day in a row, China’s currency continued to fall, but as its decline at least slowed, world stocks started to rebound. Still, that hasn’t necessarily quelled fears of it sparking a “currency war.”

China tried to ease fears of more big declines for the yuan as it on Thursday only fell 0.2 percent compared with drops of up to 1.9 percent on the previous days. It has dropped a total of 2.9 percent since Tuesday.

 There is “no basis for persistent and substantial devaluation,” said a deputy central bank governor, Zhang Xiaohui, at a news conference. Zhang said the yuan is close to “market levels” after two days of sharp declines.