Saturday, August 15, 2015
Marc Faber : Yuan Devaluation Completely Meaningless
"You have to look at the Chinese currency in the context of all other currencies," Faber told CNBC. He pointed out that over the last several years it has appreciated against the dollar, which in turn has been appreciating.
"The 2 or 3 percent devaluation of the yuan [against the U.S. dollar] is completely meaningless," Faber said. "The Chinese yuan has appreciated by 80 percent over the past two years against the yen," he said.
"Don't forget the People's Bank of China has said that they will have now a currency that will reflect more market forces. And that means that if the market forces are against the currency, then the currency will go down," Faber added.
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.Dr. Doom also trades currencies and commodity futures like Gold and Oil.
Posted by Nicole Bourbaki