While The World Watches Brexit China Concerns GrowRupert Hargreaves
While the world has been watching the collapse of the British pound and trying to second-guess the Federal Reserve, China’s policymakers have been busy.
At the beginning of the year speculation that China might decide to devalue its currency sent markets around the world into a tailspin. However, Chinese policymakers acted quickly to stop a yuan sell-off by selling tens of billions of the countries dollar reserves and pumping up offshore interest rates on the yuan to squeeze out speculators. The plan worked and for several months all was calm.