By Laura He, CNN BusinessThe Chinese currency is declining rapidly as the world’s second largest economy falters under the weight of Covid restrictions. In the same month, China’s foreign exchange reserves fell by the most since late 2016. Authorities this week tightened Covid restrictions on the country’s two most important cities — Shanghai and Beijing — after Xi pledged to “unswervingly” double down on the strict zero-Covid policy. This could help the struggling Chinese economy, which saw its slowest pace of export growth in two years last month. As long as the pace of depreciation is measured, “policymakers might still welcome a weaker currency,” Goldman Sachs analysts said.

Source: CNN May 13, 2022 12:31 UTC