This is the news that made many persons to get shocked. The thing which made to think or remind us about the happening of Great Depression in 1929 and Sub Prime Crisis between 2007-09. 

Can you get what i am going to share about?

Its about the "Devaluation of China's Currency Yuan (CNY)".

First of all, we have to know what is Devaluation in terms of a currency. 

A deliberate downward movement to the value of a country's currency, relative to another currency, group of currencies or standard.

In other words, Devaluation is a monetary policy tool of countries that have a fixed exchange rate. It is often confused with depreciation, and is in contrast to revaluation.

What will be the effects of currency devaluation 

Exports may increase due to the cheap cost for the other countries and viz, Imports may decrease due to high cost to pay more when compared with before.

Increase in Exports and reduced Imports makes the country's balance of trade and payment to possibly positive. 

From that Inflation may get into play. They may in turn get their play on the GDP

Devaluation of Chinese Currency Yuan

Why this devaluation of currency Yuan happened? What and Why china had done this?

What will be the effect of the rest of the world from this devaluation?

What will be the chinese market's position (in market perspective)?

What will be the future for the china from this devaluation?

For all the above questions, the solution lies below,

China is having a peculiar procedure that the traders can push and pull the value of their currency Yuan. This made the currency to become stronger or weaker towards the US Dollars. Then the Central Bank so called People's Bank in china came into play taking into account all the previous ups and downs accordingly. Hence it had devalued the currency.

On the other side the major income contributor for the China is their exports. China's customs officials had affirmed that the exports of the China had come down to the extent of  8.30% when compared with their last year performance. It may be a tactic of devaluing their currency to make their exports stronger than before. 

Being the rest of the world, China is a country which had made its currency artificially down to make its manufacturers get their share of income. Hence many developed countries like USA being a largest consumer of these things will be facing a negative thrift because of their products becoming costlier than china's hence loosing the market share.

Some countries may have invested on the china's development, in turn devaluing them will cause the economy to get pushed to a negative side. Especially showing them as a weaker nation and devaluing again will make them even more worse.

China's future may be in pressurized situation as the currency Yuan is one of the most accepted currencies. Its liberalization for their exporters getting benefited will cause some ill effects from which the same will be reversed sooner to be in the competition with their supporting and also rival countries in trade.