China Devalues its Currency Yuan Tuesday Aug 11,2015

 

China has devalued its currency Yuan (also known renminbi)to boost flagging exports in a move that risks deepening the global currency war.

After recent data showing falling exports and a stalling manufacturing sector, the central bank said on Tuesday Aug 11,2015 that it was allowing the yuan to weaken by nearly 2% in the hope of making China’s exports cheaper and pushing down borrowing costs

In what it called a “one-off depreciation”, the People’s Bank of China said the centre of the yuan’s trading band was reset 1.9% lower at 6.2298 per US dollar, its weakest point against the US dollar for almost three years. It was 6.1162 on Monday Aug 10,2015

Tuesday's fall in the yuan is the biggest in a decade; the surprise devaluation left the currency reeling at a 3-year low against the US dollar