The Chinese yuan hit a new low today after the central bank announced reforms to make the exchange rate system more market-oriented.
The People's Bank of China reduced the yuan's reference rate to 6.4010 yuan per dollar, falling another 704 basis points this morning.
It's the third cut in three days. Since Tuesday, the yuan's reference rate has dropped by a total of 4.66 percent against the dollar.
On Wednesday, a spokesman for the central bank said the current exchange rate system is based on supply and demand. He said the fluctuation is normal and should not be worrying.
The central bank will continue to improve the market-oriented exchange rate system and keep it in a reasonable range of fluctuation. The spokesman also stressed there's no economic basis for a continuous fall of the yuan.