China Devalues Yuan to Strengthen Economy
China shocked international financial markets Tuesday by devaluing its currency in an apparent move to strengthen its economy, which has been slowing down.
The Chinese yuan fell nearly 2 percent after the People's Bank of China made the move, the biggest drop in a decade and the lowest rate against the U.S. dollar in nearly three years.
The idea is to make Chinese products cheaper when they're sold in other countries, thereby undercutting competitors and keep Chinese workers on the job.
Not only has China's once-booming economy been showing signs of weakness, but its high-flying stock market has taken a severe hit in recent months.