A trade war with the US, slowing economic growth, a slump in the stock market - China’s economy is under pressure.
And that is hurting the currency.
After hitting targets like clockwork for years, even a small fall in China’s economic growth is significant.
GDP growth of 6.5 percent is China’s worst quarterly performance since the depths of the financial crisis in 2008.
This year’s stock market plunge, down by nearly a third since January, is the worst since the rout of 2015.
Meanwhile, Donald Trump’s rising tariffs on Chinese goods and talk of a trade war are creating uncertainty among investors.
Tariffs would mean there is less demand for Chinese goods and, in turn, less demand for the renminbi.
The renminbi is nearly at seven against the dollar, potentially its lowest level for a decade.
Hitting seven could unnerve investors and trigger traders to pounce.
It might also rattle Chinese households, leading them to convert savings into US dollars.
But it may be the pace of the decline that is more significant.
Some economists say investors are less likely to be spooked
if China’s central bank intervenes to support the currency while letting it gently slip to seven.
The size of China’s economy and its importance to the region means a weaker renminbi would almost certainly knock other currencies in Asia.
And those with current account deficits, where imports exceed exports, such as India, Indonesia, and the Philippines, would be most exposed.
India is already feeling the impact, as the rupee has hit a series of new lows over the past few weeks.
But a weaker renminbi against the dollar would also weigh on Chinese companies with dollar-denominated debt.
The renminbi may not be a reserve currency, but the size of China’s economy means its value has far-reaching ramifications for the world.