The 'vulnerable' economies after China's surprise currency move

North Asian economies appear most exposed

Puay Yeong Goh, senior economist, emerging markets debt at Neuberger Berman, discusses the implications of the Chinese currency devaluation on the rest of Asia.

China is taking the long view with its recent currency depreciation, and on that basis the move should eventually be positive for everyone. But it still looks set to cause short-term pain for its competitors and suppliers in the rest of Asia. China's central bank (PBOC) surprised the market on 11 August by devaluing the US dollar/Chinese yuan fix by 1.9%, the largest single day depreciation since the 2005 de-pegging. Investors 'caught off guard' by China's shock currency devaluation Implications for China's currency In the near term, the sharp appreciation of the US dollar si...