Compounding the confusion created by the VAT announcement, China has this week surprised the world by allowing its currency to devalue by about 5pc. No one knows whether this is the full extent of the devaluation or whether more will follow. But the fall to Rmb 6.4 against the US dollar is equivalent to $13-14/t off the urea export price and eclipses the likely $3-5/t rise in price due to the reimposition of VAT on fertilizers.
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