The Chinese central bank (PBOC) Wednesday reduced by nearly 0.60% reference level of the yuan against the dollar, the biggest daily drop since the dramatic devaluation of August 2015.
The PBOC set the value of the yuan, also known as renminbi at 6.4943 yuan per dollar, declining by 0.59% compared to baseline on Tuesday (6.4565), according to the Foreign Exchange Trade System .
China allows a margin daily rise or fall of the currency of a 2% maximum relative marking the start of the day price.
In August, China shook surprised with a devaluation of 5% against the dollar, a move seen as a measure of support to exporters.
Although China continues to control the convertibility of its currency, the renminbi is subject since 2015 to intense downward pressure, in a context of fears about the economy and massive capital flight.
Wednesday reduction partly reflects the recent rebound in the dollar on world markets, but also illustrates Beijing intends to fluctuate more freely let its currency, both upward and downward, following the demand of investors.
AFP