The pace of China’s falling currency, now at its lowest level in nearly five years, has raised the prospect of renewed intervention by the central bank as Beijing seeks to control its fragile exchange rate policy. The sharp decline in the renminbi has put investors on notice that the Chinese economy, an engine of global growth, may be slowing at a faster pace than previously forecast. Investors around the world are worried that an unexpectedly fast depreciation will further destabilise China’s economy. Some also fear it could trigger a wave of competitive devaluations across the region. “During our investor meetings in December, the most significant risk that investors were worried about was a substantial devaluation of the renminbi,” wrote Timothy Moe, Goldman Sachs’ chief Asia-Pacific equity strategist, in a research note on Wednesday. Traders are selling the renminbi in the open market, and this week’s drop of 2 per cent has intensified pressure on other emerging market currencies, particularly in Asia. It has also spurred significant selling of US and European stocks.