What has China done?
China’s central bank has devalued the yuan by nearly 2% against the US dollar for the second time in two days to boost exports and take it a step nearer to becoming an official reserve currency.
Why has Beijing acted now?
Industrial production, investment and retail sales data for July were weaker than expected, while at the weekend figures showed Chinese exports tumbled 8.3% in July, their biggest drop in four months. After a string of weakening output growth figures going back to last year, the authorities have come intense pressure internally to address the slowdown with a dramatic policy shift.