China's central bank loosened the yuan to four-year low - 6.4 yuan for $1

Almaty. August 13. Silkroadnews - On Thursday, the official exchange rate of yuan against the dollar fell to four-year low 6.40 yuan/$1, reported RBC.
As recalled, the regulator began to devalue the national currency on Tuesday, August 11 and 12 when the rate was lowered by 1.86% and 1.62% respectively.
Some experts believe that the devaluation of the yuan is part of the policy, which aims at a free circulation of RMB in the international market.
Other experts point out that China is committed to "separate" the national currency from the dollar. Thus as noted Head of Research of Asian currencies at HSBC Paul Makel, the volatility of the yuan, "has led to a weakening of other Asian currencies against the dollar and increased concerns about the beginning of a regional currency war".
The devaluation of the Chinese yuan by 1.9% on Tuesday led to a drop in stocks of emerging market currencies. The index of developing countries MSIC Emerging Markets on the day decreased by 1.1%, to 878.27 points. Index Bloomberg, tracking the 20 most traded currencies of emerging markets, by results lost 0.7%, having fallen to a record low. The largest decline, 1.6%, showed the Singapore dollar.
As explained Bloomberg, Asian currencies are falling because of concerns that a weaker yuan would force other countries in the region to reduce the rates of their national currencies, so that to compete with cheapened Chinese imports.
On Tuesday, the People's Bank of China announced the devaluation of the yuan. This was preceded by the publication of data on the fall in exports. Reference rate was reduced by a record 1.9%, triggering the sharpest drop of the yuan in January 1994. On Wednesday, the Chinese Central Bank has continued to devalue the currency by reducing its rate by another 1.6% to 6.42 yuan per dollar.
Steps lead to the collapse of the regulator to six-year low in prices for aluminum and copper. The devaluation of the yuan adversely affected the price of oil: futures contracts for Brent fell by almost 2.5%.