Published by Zeb BhamThe Chinese yuan is set to hit a 16-year low on international currency markets this month, under pressure from signs of slowing growth and a rising dollar.Data compiled by Bloomberg shows the currency has fallen 0.5 per cent this month and is continuing to slide this morning.Speaking to reporters yesterday, central bank governor Zhou Xiaochuan resisted calls for the People's Bank of China to allow the currency to rise more quickly, pointing to slower industrial output figures to suggest that the country's economy is cooling.Guan Jiaying, a Beijing-based currency analyst at China Citic Bank, said policymakers were unwilling to allow the yuan to appreciate while industrial output is growing at its slowest pace in almost a year."The central bank also seeks to maintain the yuan's relative stability versus the currency basket and the dollar index rose this month," he said.The decision to promote slower appreciation came despite persistent calls from overseas markets to allow the yuan to rise to reflect China's export strength.For more information on foreign exchange treasury services and risk management, visit our Corporate FX site.