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Economy

What is really behind the 'weak yuan'?

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A Chinese national flag flies at the headquarters of the People's Bank of China, the country's central bank, in Beijing, on Jan. 19.   © Reuters

TOKYO -- Fears of a weaker yuan are rattling global financial markets.

     Concerns about the Chinese currency are perhaps to be expected as the slowdown in country's economy, the world's second-largest after the U.S., is expected to continue for a while. But unlike their counterparts in Japan and the West, Chinese monetary authorities strictly control foreign exchange rates. A careful look at their intentions is therefore useful.

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