In an unprecedented move, the People's Bank of China in late April cut the amount of foreign exchange banks must hold as reserves to 8% from 9%.That stemmed the yuan's decline for a few days, but it soon started falling again. A weaker currency has some upside. As the yuan gets cheaper, it makes China's exports more competitive. This could help the struggling Chinese economy, which saw its slowest pace of export growth in two years last month.
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