The Chinese yuan extended its 2022 decline against the US dollar in the final trading session of October. The yuan faced deteriorating economic down as millions of people are under lockdown over climbing cases of COVID-19. The world’s second-largest economy is going through all sorts of bleak economic developments, leaving investors worried about its future.

First, on the data front, the National Bureau of Statistics (NBS) manufacturing purchasing managers’ index (PMI) slipped into contraction territory in October, sliding to 49.2, down from 50.1 in September. The non-manufacturing PMI eased to 48.7, down from 50.6. The general PMI also tumbled from 50.9 to 49.0.

But the most recent PMI statistics might offer a hint into what the country could endure in the coming weeks and months, as more lockdowns are occurring nationwide.

China is bolstering its efforts to contain the latest wave of COVID-19 outbreaks. On Sunday, the country reported nearly 1,900 new infections, the highest since Aug. 20. This has forced multiple districts and neighborhoods to be locked down and barricaded.

Officials note that northern cities close to international borders are witnessing higher case numbers heading into the winter months. As a result, they could suffer from new curbs.

It is unclear how long these measures will last. But one local person might have summarized the situation best:

“The practices and atmosphere all sound so familiar,” said Cynthia Lu, a mother of two primary school children who lives in Pudong. “The idea that my kids may need to have online class again and the family has to be stuck in the room all day makes me so sick.”

Year-to-date, the yuan has lost about 15% against the greenback.

USD/CNY currency pair rose 0.67% to 7.3010, from an opening of 7.2525, at 14:06 GMT on Monday. The EUR/CNY dropped 0.07% to 7.2247, from an opening of 7.2297.