China Insists There’s Nothing to Worry About as Yuan Faces Big Decline

As the Chinese yuan flirts with its worst weakening in nearly 30 years, the government, media, and local analysts are insisting the currency's decline is nothing to worry about and will be fleeting. As the U.S. Federal Reserve has repeatedly raised interest rates to tackle soaring inflation, the yuan—also known as the renminbi—has easily surpassed what is often called the "psychologically important threshold" of seven yuan against the dollar. At or nearing this level of weakening, Beijing has historically stepped in to buoy its currency, as it did in 2019 and 2020, amid President Trump's trade war with China.