Chinese yuan strengthens slightly against USD, reaches 7.1043 in Monday's trading
Date
4/22/2024 3:31:45 AM
(MENAFN) According to the China Foreign Exchange Trade System, the central parity rate of the Chinese currency renminbi, commonly referred to as the yuan, exhibited a slight strengthening trend on Monday, edging up by 3 pips to 7.1043 against the U.S. dollar. This adjustment reflects the daily reference point set by Chinese authorities for the yuan's exchange rate relative to the U.S. dollar.
In China's spot foreign exchange market, the yuan's value is permitted to fluctuate within a band of 2 percent above or below the central parity rate established by authorities. This policy allows for a degree of flexibility in the yuan's exchange rate, enabling it to respond to market forces while also providing a measure of stability against excessive volatility.
The central parity rate of the yuan against the U.S. dollar is determined by calculating a weighted average of prices quoted by market makers prior to the commencement of trading in the interbank market each business day. This mechanism ensures that the central parity rate reflects prevailing market conditions and contributes to the efficient functioning of the foreign exchange market by providing a transparent and reliable reference point for currency trading activities.
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