Unlikely Near-Term Yuan Devaluation

Here’s Why a Near-Term Yuan Devaluation Is Unlikely Amid rising vulnerabilities to the global economy, world financial leaders and investors fear a disorderly China’s yuan devaluation could trigger a much larger global selloff, potentially pushing the global economy back into recession. That’s a key reason why finance ministers and central bankers from the Group of 20 largest economies meeting in Shanghai this weekend want the G-20 to reiterate past vows to avoid competitive devaluation. But there are a number of good reasons to think any potential significant yuan devaluation by China wouldn’t come until…