Economists have predicted that China’s currency, the yuan, would continue to slide against the U.S. dollar until the end of 2015, according to a survey conducted by CNN Money. Median estimates predicted a drop of 2.8 percent.
The yuan has already fallen by 2.6 percent since January, including a major two-day slump in August that resulted in global stocks being sold off and the Dow Jones Industrial Average falling by more than 1,000 points before recovering.
A fall of 17.8 percent against the U.S. dollar was one of the most dramatic forecasts put forth by an economist. China’s central bank, which has adjusted how the yuan’s 2 percent trading range is set, now uses the currency’s closing price from the previous day.
The possible continued devaluation of the yuan has prompted fears of a regional impact across Asian markets. Countries including Malaysia, Thailand and Hong Kong export in large quantities to China and any slowdown in China could lead to a regional impact.