La Central Bank of China has again devalued it Yuan. The Chinese currency falls to its lowest since August 2011 after the People's Bank of China decided to fix the listing at $6,414.
From the Far East they let it be known that it is a "stress test" but the Chinese decision was expected after the entry of the Yuan in the "basket" of special drawning rights of the International Monetary Fund, announced last November 30th.
The decision to depreciate the renminbi again is also dictated by fears of a possible rain of sales as happened last August 11th. Since that day, the Chinese Central Bank has worked hard in an attempt to stabilize the Yuan by spending figures equal to 130 billion and the Yuan has lost 3,4% of its value against the dollar.
Meanwhile, today there was a new negative session at the Shanghai Stock Exchange. The main index at the end of trading shows a decline of 0,49% to 3.455 points.
The Tokyo Stock Exchange was also down with the Nikkei index losing 1,32% to 19.046,55 points.
Moving on to Europe, it should be noted that the Swiss National Bank has decided to leave interest rates unchanged and that it will be ready to intervene when necessary to reduce the Swiss franc which is currently “significantly overrated”. The Swiss central bank left the target for the quarterly Libor in a range between -1,25% and -0,25% and left the deposit rate unchanged, as expected, at -0,75%.
“Despite a slight depreciation in recent months, the Swiss franc is still significantly overvalued,” the central bank reads. “The negative interest rate and interest rate differential with other currencies makes the Swiss franc less attractive, and continues to weaken it.”
