The Chinese yuan has weakened rapidly in recent weeks, beset by U.S. President Donald Trump's threatened trade war. The currency hit a low of 6.69 to the dollar on July 3, from a recent high of 6.27 on April 14, and was trading at 6.61 on July 9, despite statements from central bank officials supporting a stable price.
The yuan's weakness has been compounded by concerns about a slowdown in China's economic growth and possible interest and reserve rate cuts. But the currency's vulnerability to external threats raises an issue of even greater long-term international importance -- its prospects of challenging the dollar as the world's principal reserve currency.
