Interesting read on the Chinese currency
Comes with a nice visualization.
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Hi, I'm an American living in Brazil. Fortunately the past 3 years living in Brazil I have been earning in USD and converting it to BRL when the price is right, which is pretty much always. I get a lot of bang for my buck here but locals of the middle and lower classes do not buy USD, they are stuck with rising prices of goods.
Think M&A activity and the delisting (privatization) of equities . . . 50% currency devaluation = 50% discount on their equity market and public infrastructure. Political risk is high as you alluded, but its assets are not going to be left behind by global bargain hunters. "Patience pays." As a citizen I imagine you reinvest wealth into co-ops and small businesses with strong roots in the community; over 100 local currencies issued by private banks in Brazil that can be remunerated for goods and services.
Economies tend to lean toward market efficiencies, whereas speculators tend to lean toward inefficiencies on a supply/demand basis. Thus in my view a big problem/catalyst with this scenario are speculators, who inject massive "tail risk" into an already toxic monetary/fiscal policy mix. But that shouldn't distract from the gross mismanagement of its fiscal policy; cracks usually exist before speculators came into the fray like they did with the "Nixon Shock" for example.