Econonic security

CHINA IN FREEFALL: CURRENCY WAR COMING

Shock waves from Tuesday’s 1.9 percent devaluation against the U.S. dollar, which was the yuan’s biggest change in a decade, spread through financial markets, causing stocks and Asian currencies to tumble.

Beijing said the yuan’s decline was a one-time event and part of changes aimed at making the tightly controlled currency more market-oriented. But analysts said allowing market forces free rein could drive the yuan sharply lower. Those suggestions gained ammunition when the currency slid another 1.6 percent on Wednesday.