Yuan's devaluation a stabilizing move

A Chinese clerk counts RMB (renminbi) yuan banknotes at a bank in Huaibei city, East China's Anhui province, January 22, 2015. [Photo/IC]

The devaluation of the yuan for the second consecutive day has attracted global attention, as the central parity rate of the yuan was reduced by 1.6 percent to 6.3306 against the US dollar on Wednesday, according to the China Foreign Exchange Trading System. Comments:

The monetary market is a complex mechanism that requires international coordination, China's monetary authority should be given a little more time.

Huanqiu.com, Aug 12

Under the circumstances that China has huge foreign exchange reserves, moderate depreciation of the renminbi is conducive to stabilizing the country's economy and should not lead to large-scale capital outflows. Therefore, reasonable devaluation is a good move.

Beijing News, Aug 12

Undeniably, the sudden depreciation of the yuan has pros and cons for China's economy, but as long as the depreciation remains a slight and moderate rather than a sharp decline, the advantages outweigh the disadvantages. This round of exchange rate adjustment doesn't indicate that the yuan is going to be severely devalued. A greater two-way floating exchange rate according to market forces will pave the way for the yuan's internationalization and eventual inclusion in the International Monetary Fund's Special Drawing Rights basket of currencies. Moreover, a moderate devaluation of the Chinese currency can relieve the downward pressure on China's economy, which will also help stabilize the global economy.

Ta Kung Pao, Aug 12