Yuan's Plunge Marks End of Chinese Stability for Global Economy
Global Markets React as PBOC Verbally Supports Yuan
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For about two decades China’s yuan was an anchor of stability for the global economy, helping it navigate Asian and global crises by holding steady even as other currencies slid. That era appears to be over.
The yuan fell for a third day as the central bank’s reference rate dropped 1.1 percent. It recorded its steepest fall in 21 years after the People’s Bank of China said Tuesday it will allow markets a greater role setting its value. Commodities from oil to industrial metals plunged and policy makers around the region weighed responses, with Vietnam widening the trading band for its currency on Wednesday.