Tuesday 18 August 2015

WHAT TO DEVALUATION OF THE CHINESE CURRENCY COULD MEAN FOR AUSTRALIA




In his article in the 15th/16th August edition of the Weekend Australian Alan Kohler suggests there are two ways in which the unexpected devaluation of the yuan could effect Australia.
First, he says, the devaluation suggests the Chinese economy could be worse than thought and secondly, it could lead to more capital flowing from China into the purchase of Australian real estate.

In the same edition of the Weekend Australian, Sterling Largin, a global investor, suggest that the Chinese may be admitted to the International Monastery Fund (IMF) and their currency may be added to the “Special Drawing Rights” basket of currencies designed as a reserve for IMF members.


He suggests that if the Chinese currency does receive this status, the Australian Dollar will increase in value against the $US.

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