China’s Renminbi Devaluation May Initiate New Phase in Global Currency War
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In 1985, cabinet-level financial officials from several countries fashioned the Plaza Accord to moderate currency movements. From left, Gerhard Stoltenberg of West Germany, Pierre Beregovoy of France, James A. Baker of the United States, Nigel Lawson of Britain and Noboru Takeshita of Japan. CreditFred R. Conrad/The New York Times
For years, China looked like the principled noncombatant. As other countries, seeking to secure an economic advantage, let the value of their currencies slide on international markets, China held firm on the value of its money.
But this week, China jumped into the fray. In a surprise decision on Tuesday, the country’s authorities began sharply devaluing its currency, the renminbi. While the plunge paused on Friday, the renminbi was still down 4.4 percent against the dollar this week, a huge drop for China…
China’s Renminbi Devaluation May Initiate New Phase in Global Currency War
