| China's leaders continue to worry about the country's economy. The rest of the world should too. On Wednesday, China's central bank weakened its currency. It set the reference rate for the yuan at the lowest level in five years.
The actual cut was small: only about 0.3%. It didn't send world markets into a downward spiral like in August, when China devalued its currency by nearly 2%, or in early January, when it cut by about 0.5%. Nevertheless, it's a warning sign. The reference rate is the level that the People's Bank of China sets each day, although the yuan is allowed to trade in a range around that price...............................................Full Article: Source
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