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Q. What is the yuan?
A. The yuan is China’s currency. It’s also referred to as Renminbi.
Q. What happened this week?
A. The yuan has fallen by 3.5 per cent in China over the past two days, and around 4.8 per cent on global markets, sending shockwaves around the globe as investors see it as further proof the world’s second largest economy is slowing.
Q. How is the yuan valued?
A. The value is tightly controlled by the People’s Bank of China. Up until 2005, it was pegged to the U.S. dollar.
On Tuesday, China decided to reset the value to a level that more...