The I.M.F. and the Treasury have both urged China to let markets play a greater role in setting the value of the renminbi, which makes it harder for them to object now when market forces push down the currency.
So, now the currency crashes while the Almighty Buck continues to rise. The outflow of capital from China is documented. China is exporting deflation (with its cheap manufacturing) and cratered interest rates (with all that moolah chasing scant real investment). Yet another reason why The Giant Pool of Money won't go away.
A little more than two decades ago, Mexico concluded the North American Free Trade Agreement with the United States and Canada, cementing its position as an emerging market closely tied to the global economy. But less than a year later, as Fed rate increases prompted investors to move money to the United States, Mexico found itself struggling to protect the peso. It ended up letting the peso drop nearly 30 percent in less than a week.
I suppose there's a Chinese word that is pronounced "QE".