China’s yuan has fallen to its lowest level in nearly 18 years, in what some analysts say is a sign the central bank is further easing its grip on the currency to help offset the negative impact on exports from an escalating trade war.
On Thursday, the onshore renminbi dropped to as low as 7.351 per US dollar, the weakest since late 2007, before recovering some losses to 7.342, according to Reuters. The People’s Bank of China, which manages the yuan and sets its daily reference rate, weakened it to 7.209 yuan a dollar, it said.
A weaker yuan could alleviate some pressure on Chinese exporters by making their sales — a key economic driver for the country — cheaper as trade tensions between China and the US grow.
US Treasury Secretary Scott Bessent has warned China against using currency devaluation as a tool to counter Trump’s tariffs.
China’s offshore renminbi plunged to an all-time low of 7.429 per US dollar on Wednesday, a record since the offshore market was established in 2010, according to Reuters. It has since pared some of those losses.
