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.

Onshore yuan has weakened 1.4 per cent, or about 1,000 basis points, in the previous five trading days. Photo: Simon Song

Chinese yuan touches lowest level in eight years

The yuan extended its recent losses on Wednesday, diving to a fresh eight-year low after China’s central bank cut the reference rate for the ninth consecutive trading day.