FX.co ★ China keeps devaluing yuan

The yuan keeps slumping for the 4th trading session in a row which happened to be the longest fall within last two months.
The China’s government has been devaluing the yuan for quite some time now. The People’s Bank of China tries to stabilize the yuan rate against the US dollar. At the same time, the yuan keeps falling against the currencies of China’s major partner countries.
Last week the fourth consecutive drop in the yuan against the partner countries currency basket was recorded due to the expectations that People’s Bank of China would introduce new stimulus measures. The CFETS index, which reflects the dynamics of this basket, decreased since the beginning of the year by 3.5%.
This is a significant change for the yuan as any rallies with the Chinese currency can trigger panic on the market. China tries to support its exporters. And this is the main reason why the yuan is devaluated, though it was never officially announced.
At a quarter end China’s GDP increased by 6.7% in comparison with the same period last year. Statistics confirmed earlier forecasts. However, many economists from different countries are sure that statistics from China doesn’t reflect the real situation in the country.