China Devalues Yuan Most In 10 Months As Premier Li Warns: “A Disillusioned British Butterfly Has Flapped Its Wings And The Entire Global Financial System Could Collapse”
- China Devalues Yuan Most In 10 Months As Premier Li Warns: “A Disillusioned British Butterfly Has Flapped Its Wings And The Entire Global Financial System Could Collapse”
by Tyler Durden, www.zerohedge.com
In a somewhat shockingly honest admission of the fragility of the global financial system, Chinese Premier Li warns that a disillusioned British butterfly has flapped its wings and the entire global financial system could collapse. Responding to the plunge in offshore Yuan since the Brexit vote (down 7 handles to 5-month lows over 6.65), PBOC devalued Yuan fix by 0.9% (6 handles) – the most since the August crash – to Dec 2010 lows. Finally, we note USD liquidity pressures building as EUR-USD basis swaps plunge.
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Offshore Yuan is 3 handles cheap to onshore Yuan and 9 handles cheap to Friday’s fix…
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