By devaluing you protect your economy from big shocks because the price of oil stays unchanged, in the local currency. Russia did the same and has managed to maintain an economic boom in manufacturing, new industry, and hight tech military hardware.
That doesn't make sense. The oil price is denominated in US dollars, so by devaluing you push it up. It's true that the price of oil is dropping too, but in the case of China they don't have domestic reserves so that doesn't matter.
That doesn't make sense. The oil price is denominated in US dollars, so by devaluing you push it up. It's true that the price of oil is dropping too, but in the case of China they don't have domestic reserves so that doesn't matter.
IN the case of Russia they are in a pretty severe recession: http://www.reuters.com/article/us-russia-economy-idUSKBN0U70...