According to the China Foreign Exchange Trade System, the Chinese currency renminbi, or yuan, fell 258 pips to 6.7109 versus the US dollar on Wednesday.

Each trading day in China’s spot foreign currency market, the yuan is permitted to climb or fall by 2% from the central parity rate.

According to Xinhua, the yuan’s central parity rate versus the US dollar is based on a weighted average of prices given by market makers before the start of the interbank market each business day.

Meanwhile, international investors are selling yuan and fleeing China following the COVID-19 shutdown and rate reduction, worsening the outflow of foreign money.

According to the HK Post, investors are swapping yuan for dollars, driving up the dollar while driving down the yuan. According to The HK Post, rating agency Barclays reduced its yuan projection to 6.9 percent, but predicted the yuan may reach 7% if the lockdowns and supply chain disruptions continue.

Hong Kong investors sold a record USD 24.2 billion in yuan-denominated debt in March.

Due to continued COVID lockdowns, supply chain concerns, and Chinese President Xi Jinping’s crackdowns on a variety of commercial sectors, including technology and education, investors had already begun to withdraw funds from China by 2021.

Foreign investors sold USD 6.2 billion of Chinese government bonds in April, marking the longest three-month selloff since 2015.