Another devaluation of the RMB: Causes and Consequences (Part 2)

On the other hand, the decline is typical for all Asian currencies. The main factors of this movement began in the first place, the mass selling of US debt, rising dollar and the weakening of the European currency. As a result, investors have shifted to work with the dollar, the market expects the Fed raising rates and the consequent further rise in the US currency, and no one looks at the Asian currencies. The volume of trading after the announcement of the devaluation of the yuan and its revaluation in fact has not changed, either in Shanghai or Hong Kong. On the Russian stock exchange these days it has been sold and bought the total amount of 10 to 19 million rubles of the Chinese currency, trading on the Hong Kong Stock Exchange demonstrates rare consistency - the yuan persistently reduced by 0.1-0.2% per day, with trading volumes in fact unchanged. It sais only that both international and Chinese investors do not believe in renminbi as a mechanism for currency speculation, so the prospects for the yuan to become the second reserve currency in two years (since the proposal from the IMF to the Chinese authorities of that possibility), haven't advanced at all.