Why Devaluing The Yuan Won't Help China's Economy

Why Devaluing The Yuan Won’t Help China’s Economy by Frank Shostak, Mises Institute Earlier this month, the Chinese government decided to depreciate its currency on three consecutive occasions. On August 13, the price of the US dollar was trading at 6.413 — an increase of 3.3 percent against July. The key factor behind the central bank’s lowering of the yuan is a sharp decline in the growth momentum of exports with the yearly rate of growth falling to minus 8.3 percent in July from 2.8 percent in June. It is held that by means of currency depreciation that it is…