European and Japanese economies likely to be affected by China’s adjusted yuan

Wednesday, August 26, 2015 | 16:36:02

(VOVworld) – On Monday, the British Financial Times reported that the adjustment of the yuan by the People’s Bank of China has affected newly-emerged markets and major currencies.

European and Japanese economies likely to be affected by China’s adjusted yuan - ảnh 1

China’s 100-yuan notes in Beijing on August 25th (Photo: AFP)

Investors expressed concern about the possible impact on export competitiveness, stock prices, and deflation. A stronger USD could be a reason for the US Federal Reserve to postpone increasing its interest rate. According to monetary strategists, the US economy can more effectively resist the impact of China’s yuan adjustment. Meanwhile, the Eurozone and Japanese economies are being affected as they loosen their monetary policy to help domestic exporters who trade with China. Economists say the devaluation of the yuan will increase the competitiveness of exports to China.