How Brexit Makes China's Currency a Crucial Thing for Markets to Watch
Was the August devaluation a yuan-time event?
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For markets, Brexit is not just a story of European disintegration.
The financial market stresses that could emanate from the results of the U.K. referendum bear a close resemblance to what investors were worried about in the summer of 2015 and the start of 2016: the potentially unwelcome tightening in financial conditions in Asian countries. Many in the Far East, including China, operate under managed exchange rate regimes that have historically tended to rise along with the U.S. dollar when investors seek refuge in safe havens.