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Updated Aug. 11, 2015 7:10 a.m. Nigerian Time

BEIJING—China’s central bank(PBOC) devalued its tightly controlled currency, causing its biggest one-day loss in two decades, as the world’s second-largest economy continues to sputter.

Chinese authorities said the change would help drive the currency toward more market-driven movements. The move also signaled the government’s growing worry about slow growth. A shift toward a weaker currency could help flagging exports at a time when many other efforts to boost the economy haven’t proven very effective.

China’s yuan(RMB) has been on an upward track for a decade, during which the country’s economy grew to be the second largest in the world and the currency gained importance globally. The devaluation Tuesday was the most significant downward adjustment to the yuan since 1994, when as part of a break from Communist state planning, Beijing let the currency fall by one-third.

Effect to we Importers :

As a currency becomes cheaper versus other currencies, it becomes more attractive for investors to buy it because they can often take a long (wait for the price to increase) position and make money that way. It also gives more incentive for investors/creditors to invest in large projects that are happening within an economy. Products that are created in a china become more attractive because of their price. Products now become lesser if one takes solely relative purchasing power into account.

One historical example of keeping a currency artificially cheap is China keeping the Renminbi cheap and pegged to the dollar. They wanted consumers/companies from abroad to buy their products so their businesses could continue to grow. This is one reason why China saw a booming economy in export industry. Many Western companies chose to have their products sourced from China because they knew they would get a good exchange rate, thus making the product cheaper. By keeping the Renminbi cheap, China was able to promote trade and begin to help their struggling economy. They have only recently begun to take away some of their instruments that artificially keep the prices low.