Source: Business Insider screen grab

Ray Dalio, founder of the world’s largest hedge fund Bridgewater Capital, praised China’s latest currency move in a Linked In post this morning:

“China’s policy makers’ decision to squeeze the shorts in its currency is, in my opinion, a smart move because it

  • a) demonstrates the Chinese government’s power,
  • b) discourages those who would lose confidence in its currency (in turn lessening the desire to sell the yuan), which helps stabilize the balance of payments and currency, and
  • c) produces a tightening that works well in conjunction with tighter monetary policies to tighten credit (which is appropriate now).”

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