Chinese Yuan Nudges Up Against U.S. Dollar
(MENAFN) The central parity rate of China’s currency, the renminbi (yuan), firmed by 22 pips to 7.1106 against the U.S. dollar on Monday, according to data released by the China Foreign Exchange Trade System. This adjustment marks a notable uptick in the yuan’s valuation in the early trading session.
In China’s spot foreign exchange market, the yuan is permitted to fluctuate within a 2 percent band above or below the central parity rate each trading day, providing some flexibility for market movements while maintaining overall stability.
The calculation of the central parity rate is derived from a weighted average of prices submitted by market makers before the interbank market opens each business day, reflecting collective market sentiment. This mechanism ensures the rate aligns closely with real-time supply and demand conditions in China’s currency markets.
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