5. A cheaper currency
As a result of its weakening economy, China has abandoned its currency peg with the dollar and reduced the yuan’s exchange rate on three separate occasions this week. Beijing has put a brave face on this move, saying it is designed to get the yuan included in the International Monetary Fund’s reserve assets known as special drawing rights. A more obvious explanation is that China is seeking to boost growth by making its exports cheaper – a return to the growth model it is supposed to be abandoning.
