The foreign exchange business has been the hottest market for a long time, but the boom in the past few years has created a glut of cheap foreign currencies that could have a domino effect on the global economy.
That is, if we can get them out of China.
That has been one of the biggest questions on Wall Street over the past several years.
That’s because if foreign currency markets are as competitive as they seem, it will be hard to get a single currency to trade freely across borders, much less a global economy that uses more than $10 trillion in annual trade.
What you should know about Chinese currency: Read the China trade story.
What’s going on: The global financial system is still recovering from the Great Recession, but China’s economy is on the cusp of a boom that could reshape the global economic landscape.
China’s currency has soared to a record high of more than 11,000 yuan ($130) per U.S. dollar, which has led to the sharpest depreciation in the history of the yuan.
But the devaluation is not just happening on the currency front.
It is also having an impact on other areas of the economy, including foreign exchange and trade.
Chinese traders are now using foreign currency to buy everything from shoes to clothes.
And the devaluations in the Chinese yuan are making it harder for U.K. and European companies to buy goods and services in China.
This article has been updated.
Follow Alexia Cohen on Twitter: @alexia_cohen