China’s yuan shows weakening against US dollar on Thursday
Date
10/24/2024 9:55:41 AM
(MENAFN) The central parity rate of the Chinese currency, the renminbi, also known as the yuan, saw a weakening by 41 pips, setting the exchange rate at 7.1286 against the U.S. dollar on Thursday. This adjustment was reported by the China Foreign Exchange Trade System, which tracks and manages foreign exchange rates within the country.
In China’s spot foreign exchange market, the yuan is permitted to fluctuate within a 2 percent range, either upward or downward, from the central parity rate on any given trading day. This flexibility allows for minor adjustments based on market conditions while maintaining overall stability within predefined limits.
The central parity rate is a key reference point used to guide daily trading and is determined by considering a weighted average of prices. These prices are offered by a select group of market makers who provide their quotations before the interbank market opens for business each day, ensuring a balanced and fair rate.
This system plays a crucial role in China's approach to currency management, providing a controlled yet adaptable framework for the yuan's exchange rate. The daily updates to the central parity rate help to reflect real-time market dynamics while maintaining the overall direction set by the authorities to keep the currency stable.
MENAFN24102024000045015839ID1108816106
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.