The International Monetary Fund has welcomed China’s devaluation of the Yuan due to their economic need for more exports. On August 11, 2015 the People’s Bank of China announced the move from a tightly controlled currency to one more controlled by market forces. The IMF has reiterated the need for China to move towards a more market based currency before China’s recent devaluation in a report published on July 7, 2015 they stated that a free-floating currency is
necessary for allowing the market to play a more decisive role in the economy, rebalancing toward consumption, and maintaining an independent monetary policy as the capital account opens
China recent move towards a more market based currency is clearly an attempt by the country’s government to boost exports after July’s export numbers tumbled 8.3%. When looking at numbers coming out of China, like July’s export statistics, it is important to remember that they are impossible to verify and are commonly believed the be at least a little manipulated. After the massive monetary policy shift from the People’s Bank of China one should assume that China’s economy is likely in worse shape than they are currently letting on.
Recently China’s economy became the biggest in the world and with these troubling numbers coming out of China investors should watch them like a hawk.
For more information on the IMF click here
The Financier Daily 
Where China is one of the world’s top exporters, do you think we may be seeing the first signs of deflation setting in?
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Even though the global economy is getting back on track we are still not were we used to be. It is also important to remember the massive growth China has gone through these past years. That massive growth cannot be sustained indefinitely. China needs to find a way to grow sustainably before they can advance to the next stage in their emergence as an economic power.
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So long story short yes.
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