UK business body welcomes China's yuan devaluation

[LONDON] The Confederation of British Industry said on Tuesday that China's decision to devalue the yuan by nearly 2 per cent should boost demand for British exports to China in the long run.

The CBI, which represents many of Britain's largest companies, said a weaker yuan could help support Chinese growth after an unexpectedly big fall in the country's exports last month.

"Although a depreciation in the renminbi against sterling will put pressure on UK exports to China in the short term, the effect on Chinese growth should be beneficial to UK exporters over the longer term," Rain Newton-Smith, the CBI's director of economics, said.

REUTERS