We’ve been here before, but it seems to be the same story in China.
As the world’s largest economy, China has the world second largest currency, with a currency-denominated market cap of $16.3 trillion, just below the United States’ $20 trillion.
The People’s Bank of China, the central bank, has been a strong driver of economic growth in China since the country’s founding in 1949.
While the central bankers goal has been to create a stable and stable currency, it’s also become a political necessity.
When it comes to devaluation, China’s currency has been in a constant decline since the start of the financial crisis in 2008.
At one point, the yuan was trading below 6.0 yuan (RM6.4) to the US dollar.
Since then, it has fallen by over 90 percent against the greenback and has risen by over 40 percent against its main rival the US currency.
In January of this year, the currency was trading at about 6.7 yuan (about 7.6 US cents) in an official market exchange rate.
A year later, the value of the yuan is still in a bear market and has lost over 80 percent against both the US and the greenbacked.
For the time being, it seems China will continue to devalue the yuan, as it has done during the Great Recession.
But it has been slowly, and with great care, reducing its currency since then.
Last week, the PBOC lowered the value by 0.2 percent to 9.786 yuan (US$1.8 billion).
At the time, the announcement seemed a good deal of progress.
If true, this is good news for Chinese consumers.
According to the Chinese consumer survey released last month, most people expect the currency to decline further.
And according to a Bloomberg report, the average monthly income for a Chinese household has dropped by over 2.5 percent since 2009.
However, the real estate market has suffered a major hit, with prices dropping by more than 10 percent.
China has already begun to slow the devaluation.
After the PBoc cut the value, it is unlikely that China will increase its current exchange rate anytime soon.
Nevertheless, this week, China released another measure of the economic growth, and the economy is expected to grow by 3.1 percent this year.
By contrast, China had been growing by just 1.6 percent last year.