The direct implications from CNY devaluation as other EMs calculate and see both the impact of a depreciation from a large competitor and the potential underlying demand weakness that it reflects. The interplay of China concerns, commodity weakness and EM imbalances had already intensified the weakening trend in EM FX over the past month. The CNY devaluation, coming on top of this, continues to add to the pressures on EMs with trade relations to China.