China’s currency devaluation signals more pain ahead for Arabian Gulf oil producers | The National:
"A week that saw China devalue its currency by 4.4 per cent following a rout in Chinese equities could prove to be bad news for commodity-exporting countries, including the UAE.
That is because China, now the world’s top economy in terms of purchasing power parity, has been supporting world commodity prices after the global financial crisis, according to the IMF’s latest update on the country. Without China’s support, oil prices will fall further.
As China’s currency declines, the price Chinese companies pay for commodity imports rises. This reduces the amount of foreign commodities local firms are willing to purchase, which harms the exporters of oil and industrial metals."
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