In case China devalues its currency Yuan against US dollar Which of the following are the likely fal...........

Economic Affairs Foreign Trade - Trends and Policy

In case, China devalues its currency Yuan against US dollar. Which of the following are the likely fallouts of this decision?

1. US trade deficit with China will decrease.

2. The move is likely to hurt Indian exports

3. There are apprehensions of currency war

4. India’s trade deficit with China will widen further

5. World’s major currencies are likely to depreciate against US dollar

Codes

1, 2, 3 and 4 only

2, 3, 4 and 5 only

1, 2 and 3 only

2, 3 and 5 only

1st statement is incorrect. In case, China devalues its currency Yuan against US dollar, US trade deficit with China will increase.

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