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Yuan Shock–The Export Angle
There is a tendency to view China’s 1.9 percent devaluation of the Yuan on August 11 through the lens of the U.S. dollar. After all, the Yuan has been fixed or closely linked to the greenback for decades, and Washington has been among the most vocal critics of China’s currency policy. However, currency and trade data suggest that China’s devaluation has more to do with the other currencies.