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Yuan Devaluation Much Ado About Nothing

Initial knee-jerk reaction to China’s move this past Tuesday to peg their currency slightly lower versus the greenback rattled markets around the world as it was/is believed that China made the move in order to goose their slowing export growth.

While that could have been misconstrued as the intent, a 1.9% devaluation of their currency will not do much to move their export needle at all. It would take a high single digit to maybe even a very low double digit lowering of the pegged rate to make a noticeable difference.

Keep in mind that China has long expressed a desire to make the Yuan a true international currency like the USD is and would love nothing more to see countries consider the yuan as a currency to be...