Emerging market currencies are sharply declining

Trump's latest measures to deepen protectionism have triggered further sell-offs in emerging markets.
The currencies and indices of emerging markets are turning to their biggest losses since September 2015. The Hungarian forint has fallen to a historic bottom after the country's central bank has confirmed its not particularly aggressive monetary policy.
Yuan fell on Thursday for the tenth consecutive day against the dollar, which was his longest series of declines since March of 2014.
A cheap yuan is part of China's policy to resist US blows in the ever-worsening trade war between the two super-economic powers.
Chinese yuan is cheaper also because the central bank of China refrains from raising interest rates after the Fed raised interest rates by 25 basis points.

Beijing promises further internationalization of the yuan and a free trade

China will continue to promote the internationalization of the renminbi, as well as free trade and investment, Vice Chairman of the People's Bank of China Fan Yifei said on Thursday.
The head of the regulator is sure that achieving sustainable economic growth and maintaining financial stability will create a good basis for the internationalization of the renminbi, the Central Bank's website said.
However, the process will be long, and the decisive role will be played by market forces, he said at a conference in Sydney.
The head of the central bank of Australia, Philip Lowe, on Thursday commented on the statement of the Chinese colleague, calling the internationalization of the yuan entailing significant consequences for the global financial system.
Fears of further weakening of the yuan and slowing the world's second largest economy prompted investors to withdraw funds abroad. In response, at the end of 2016 and early 2017, Beijing imposed restrictions on capital outflow, which influenced the pace of internationalization of the national currency. However, the weakening pressure of capital outflow helped to stabilize the yuan this year, while the country's foreign exchange reserves again exceeded the key $3 trillion mark.