AB - China's Currency Devaluation Increases Uncertainty

China’s surprise currency devaluation sparked a debate on whether it was part of the country’s ongoing financial reform or a measure to boost flagging exports. The plot thickens, as the flexibility now given to the currency is, ironically, forcing the authorities to step up their intervention, at least for now. It will take some time for the market to settle down and the currency’s direction to become clearer.