Fall Percent: Capital Outflows and Percent Hike

fall percent: Beijing now only allows the tightly controlled yuan to rise or fall 2 percent on either side of the daily fix by the central bank to prevent excessive volatility, according to Deutsche Welle. Imponderables galore China's currency has log been under pressure over uncertainty over the health of the world's second-largest economy as it shifts from a policy of ultra-expensive investments to an economy relying a lot more on strong domestic consumption. The 0.92-percent hike marked the strongest daily increase since July 2005, and with it the biggest one-day upward move since the yuan was revalued and taken off a fixed dollar peg in the same year. There have also been a lot of worries over increased capital outflows and the sharp rise of the dollar following Donald Trump's election victory and anticipation of additional US interest rate hikes in the months ahead. Such a measure will automatically diminish the role of the greenback. In another, but closely related move to stabilize the national currency, China announced last week it would almost double the number of foreign currencies it used to determine the official value of the yuan. (news.financializer.com). As reported in the news.