China’s yuan shows slight strengthening against US dollar on Monday
Date
5/27/2024 3:25:30 AM
(MENAFN) On Monday, the central parity rate of the Chinese currency, the renminbi (RMB), also known as the yuan, showed a slight strengthening, increasing by 11 pips to reach 7.1091 against the U.S. dollar.
This information was reported by the China Foreign Exchange Trade System, which monitors and regulates foreign exchange transactions in China. In China's spot foreign exchange market, the yuan's value is permitted to fluctuate within a specified range relative to the central parity rate.
In detail, the currency is allowed to appreciate or depreciate by up to 2 percent from the central parity rate on any given trading day.
The central parity rate of the yuan against the U.S. dollar is determined based on a weighted average of prices provided by market makers prior to the opening of the interbank market each business day.
This mechanism ensures that the central parity rate reflects the prevailing market conditions and is not subject to excessive volatility.
The daily adjustments to the central parity rate serve as a mechanism for the Chinese authorities to manage the exchange rate and maintain stability in the currency markets. These efforts are aimed at promoting confidence in the RMB and supporting China's broader economic objectives.
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