The Chinese yuan, also known as the renminbi, is already convertible under the current account - the broadest measure of trade in goods and services. However, the capital account, which covers portfolio investment and borrowing, is still closely managed by Beijing because of worries about abrupt capital flows.

The People’s Bank of China set the midpoint rate at 6.1175 per US dollar. Photo: Reuters

Yuan falls to four-month low offshore

The yuan fell to four month-lows in the offshore market on Wednesday as a deepening stock market rout prompted investors to cut their long positions in the mainland currency.