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Devaluation opens floodgates of yuan selling

HONG KONG -- A month after devaluing the yuan, China's central bank is dealing with an unexpected consequence of the surprise move, attempting to stop the acclererated outflow of the currency abroad through interventions while seeing no signs of improvement for exports.

     Until about a month ago, out of the belief that the yuan's value would keep rising in the medium-to-long term, companies with operations in China had held onto the local money they had obtained through settlements. Many Chinese companies also took on dollar-denominated loans, thinking that if the yuan appreciated against the greenback, this would lighten their repayment burden.

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