You must know the concept of revaluation and devaluation of money.

Revaluation- when currency appreciates.

For Example- 1$= Rs 60. After revalution- say 1$ = Rs 55.
Devaluation is just the opposite, with 1$=Rs 60 becoming, lets say, 1$=Rs 65.
Revaluation makes exports costlier and imports cheaper. Whereas, Devaluation makes
exports cheaper and exports costlier.
Reasons for Devaluation Of yuan.
1. China's exports had been declining and faced with stalling manufacturing sector,
China's central bank decided to devalue to make be exports competitive and to pare down
borrowing costs.
2. China has been lobbying to include yuan in IMF's reserve currency's basket which are
used by the Washington based fund to lend to sovereign borrowers. The current members
of the group are the US dollar, yen, euro and British pound.

Diana Choyleva, chief economist at Lombard Street Research, said the devaluation was a
necessary re-balancing of global currencies that would encourage Chinese companies and
households to spend their savings. She said it was necessary for the US to accept the move
and Japan to end its reliance on competitive devaluations to maintain its own exports.