The Chinese central bank has devalued the national currency, the yuan, to its lowest rate against the US dollar in almost three years.
The lender said the move was a “one-off depreciation” of 1.9% which would make the exchange rate more market-oriented.
The People’s Bank of China set its central parity for the currency at 6.2298 to $1, up from 6.1162 yuan.
The lender manages the rate through an official midpoint, from which trade can rise or fall 2% on any given day.
At the weekend, China – the world’s second largest economy – reported a surprisingly sharp fall in exports and a slide in producer prices to a near six-year low in July.