Chinese Exporters Lose Some of Their Edge From a Weakening Yuan

It’s often said that a weakening currency is a boon for a country’s exporters, because it can make the products they sell overseas cheaper for buyers paying in another, stronger currency. But as China’s experience with the recently weakening yuan illustrates, that’s not always the case.

So far this year, the onshore spot yuan has depreciated by about 9% to around 7 per dollar, weakening to 7.3200 per dollar in early November — the lowest since December 2007.