China’s yuan shows strengthening against US dollar on Monday
Date
9/30/2024 4:42:54 AM
(MENAFN) On Monday, the central parity rate of the Chinese currency, known as the renminbi or yuan, saw an increase of 27 pips, bringing its value to 7.0074 against the U.S. dollar, as reported by the China Foreign Exchange Trade System. This movement indicates a slight strengthening of the yuan in the foreign exchange market.
In the context of China's spot foreign exchange market, the yuan is permitted to fluctuate within a range of 2 percent above or below the central parity rate on each trading day. This policy allows for a degree of flexibility in the yuan's value while providing a framework for its trading activities.
The central parity rate itself is determined using a weighted average of prices submitted by various market makers prior to the commencement of trading in the interbank market each business day. This approach helps to ensure that the rate reflects market conditions and expectations while allowing for appropriate adjustments based on supply and demand dynamics.
Overall, the recent strengthening of the yuan against the dollar highlights ongoing developments in China's foreign exchange policies and market conditions, as well as the central bank's efforts to manage currency fluctuations effectively.
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