“It looks like this is the end of the fixing as we know it,” said Khoon Goh, a Singapore-based strategist at Australia & New Zealand Banking Group Ltd. “The one-off devaluation of the fix and allowing more market-based determination takes us into a new currency regime.”
The devaluation jolted global markets, with the currencies of South Korea, Australia and Singapore falling more than 1 percent
Read more: bloomberg.com
The lowdown is... this policy move is a reaction on China's part to a serious decrease of Chinese exports, and, overshadowing that is the rising risk of deflation.
Deflation tends to have a nasty little side effect - increased unemployment as a lower level of demand in the economy can lead to an economic depression.
We may not have to wait till September for kids... could come today.