Tenge flotation sparks fears of Asian currency war

Tenge flotation: Kazakhstan’s currency plummeted by 23% against the dollar this week within hours of Astana’s surprise announcement that it was to allow the tenge to float o the international currency markets  The move comes just over a week after China devalued the renminbi and is a response from the oil-dependent Central Asian country to the collapse in energy prices and the effect that the weak rouble is having on its exports. “[We] need to adapt to oil prices at $30-40 per barrel” the presidential press service explained.
With Vietnam also taking steps to devalue the dong,  Kazakhstan’s move has exacerbated fears that the region is heading towards an unintended currency war. 

Source: FT