The Value of China’s Yuan Is Lower Than You Think

Yuan depreciation would affect not only the economy but also ripple throughout China’s political and social structure

This picture taken on September 24, 2013 shows US dollar notes being counted next to stacks of 100 yuan (RMB) bank notes at a bank in Huaibei, in eastern China's Anhui province. With deals from London to Singapore, China is seeking a greater role for its yuan currency in global markets to challenge the hegemony of the almighty dollar. STR/AFP via Getty Images

Commentary

China’s economy is heading toward further decline. Although the Chinese Communist ruling Party has come up with a 5.2 percent GDP growth rate through a fudging method of slashing the previous year’s output, in U.S. dollar terms, the nation’s economy has met negative growth for the first time in more than two decades. Some economists even deduced that the Chinese yuan has fallen to over 1:22 against the U.S. dollar.