DHAKA: China’s Central Bank has again cut the guiding rate for the national currency, the yuan, a day after Tuesday’s record 1.9% devaluation.

The move sent fresh shockwaves through Asian markets, but the bank has sought to calm fears, saying it was not the start of a sustained depreciation.

This is now the biggest two-day lowering of the yuan’s rate against the dollar in more than two decades.

The commerce ministry said the lower rate would boost struggling exports.

Chinese exports fell more than 8% in July, adding to concerns the world's second largest economy is heading for a slowdown.

But the action on the yuan sparked fears of a global and destabilizing ‘currency war’.

There has been criticism from the US, where markets fell sharply overnight.

On Wednesday, China’s central bank fixed the ‘official midpoint’ for the yuan down 1.6% to 6.3306 against the dollar.

The midpoint is a guiding rate, from which trade can rise or fall 2% during the day, reports the BBC.

BDST: 1625 HRS, AUG 12, 2015
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