China’s renminbi fell to the lowest level since 2008 as the country’s central bank holds back from intervening to prop up the currency in response to the rallying dollar. The renminbi is the latest major currency to succumb to a wave of dollar strength that has sent exchange rates from the pound to the yen spiralling lower this year. 

1. Why has the value of the renminbi fallen against the dollar over the middle two quarters of 2022?

2. Can and should the Chinese government try and counter this exchange rate movement?