The National Bank of China has lowered the yuan-dollar exchange rate to a two-year low

The  National Bank of China (central bank) on Monday lowered the average exchange rate of the yuan to 7.0298 to one dollar, according to data on the regulator's website.

According to the bank, this is the lowest value of the exchange rate since July 2020. The yuan exchange rate was lowered by 378 basis points on Monday.

China's central bank has been lowering the exchange rate since late April amid multiple outbreaks of coronavirus infection, particularly the lockdown in Shanghai and the resulting disruptions in production and logistics. Thus, on April 26, the yuan showed its biggest drop since August 13, 2015, dropping by 681 basis points at once. In May, amid the improvement in the epidemiological situation, the yuan began to appreciate, and since mid-June there have been small fluctuations within 360 basis points.
The Chinese authorities announced in their socio-economic development plan released at the opening of the parliamentary session on March 5 the intention to keep the yuan stable at a rational and balanced exchange rate in 2022, as well as to implement a balanced monetary policy.