Chinese yuan falls 19 pips against US dollar
Date
5/13/2024 9:39:12 AM
(MENAFN) On Monday, the central parity rate of the Chinese currency, the renminbi (yuan), against the U.S. dollar was adjusted to 7.1030, weakening by 19 pips, as reported by the China Foreign Exchange Trade System. This adjustment reflects a slight depreciation of the yuan relative to the U.S. dollar in the foreign exchange market.
In China's spot foreign exchange market, the yuan is permitted to fluctuate within a daily trading band of 2 percent around the central parity rate. This mechanism allows for some flexibility in the exchange rate to accommodate market dynamics and maintain stability in the currency market.
The central parity rate of the yuan against the U.S. dollar is determined based on a weighted average of prices offered by market makers prior to the opening of the interbank market each business day. This process ensures that the central parity rate reflects prevailing market conditions and contributes to the orderly functioning of the foreign exchange market.
Overall, the adjustment in the central parity rate of the yuan against the U.S. dollar underscores the dynamic nature of currency markets and the importance of mechanisms in place to manage exchange rate fluctuations while promoting market stability.
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