Q&A: Former Treasury official Collyns on China's currency
WASHINGTON (AP) — A year ago, the People's Bank of China jolted financial markets by devaluing the Chinese currency.
The Associated Press asked Charles Collyns, a former Treasury Department official who is chief economist at the Institute of International Finance, to explain.
Why aren't markets worried about the Chinese currency's latest drop?
Chinese corporates started to repay (U.S. dollar loans), and a lot of Chinese residents began to look outside China for investments.
The Chinese authorities resisted the (resulting) depreciation of their exchange rate by intervening pretty substantially.
State-owned enterprises have excess capacity, excessive debt.