Depreciation of China's currency offers opportunities for economies in Europe

Last week's depreciation of the yuan stoked fears that European exports to China could be hit. As the euro and the pound strengthened, concerns started to grow that companies selling goods to the second-biggest economy in the world would see their trading margins shrink.

But that scenario is unlikely to be played out in the long term as the yuan becomes a major global currency. The People's Bank of China, or central bank, made the decision to reform the exchange rate mechanism to better reflect the yuan's strength against the US dollar.