World loses yuan as anchor of stability

Beijing

FOR about two decades China's yuan was an anchor of stability for the global economy, helping it navigate Asian and global crises by holding steady even as other currencies slid. That era appears to be over.

The yuan fell for a third day on Thursday as the central bank's reference rate dropped 1.1 per cent. It recorded its steepest fall in 21 years after the People's Bank of China said on Tuesday it will allow markets a greater role in setting its value.