While you were busy watching Super Bowl 50, the Chinese continued dumping U.S. Dollars in record amounts.
At $3.23 trillion, China still has the world’s biggest reserve of foreign currency holdings.But that has declined by $420bn over six months and stands at the lowest level since May 2012.
Many Chinese businesses hold debt in dollars and managing those debts with a severely weakened yuan could cause problems and some companies to fail.
So China has been trying to engineer an ordered devaluation of the yuan, but that is proving hard to deliver.
Investors have been trying to pull funds out of investments priced in yuan and speculators have been betting on further falls in the currency.
Full article: China’s currency reserves plunged in January (BBC)