Chinese yuan hits 16-year low against US dollar amid economic slowdown

By Alperen Aktas

ISTANBUL (AA) – The Chinese yuan on Thursday hit its lowest value against to the US dollar in 16 years.

It is reflecting a rising sense of pessimism concerning China's economic conditions and financial markets, according to Bloomberg.

The yuan slipped 0.2% to 7.3294 per greenback in both onshore and offshore markets, although the People's Bank of China set a stronger-than-expected daily reference rate for the 54th consecutive day, the longest streak since 2018.

Decrease in both consumer and producer inflation in July raised concerns about deflation risk in the country last month.

China's exports fell 8.8% year-on-year to $68.4 billion in August due to lower global demand for Chinese goods, according to official data released on Thursday.

It was the fourth straight month of decline after a 14.5% drop posted in July, data from China’s General Administration of Customs showed.

Mainland China's imports fell 7.3% from a year ago to $216.5 billion in August.

Its trade surplus amounted to a three-month low of $68.4 billion in the month, as exports decreased more than imports.