The Chinese yuan (renminbi) opened the week stronger, as the central parity rate appreciated by 22 pips to 7.1106 against the U.S. dollar on Monday, according to the China Foreign Exchange Trade System.
In line with China’s exchange rate mechanism, the yuan is permitted to fluctuate within a 2 per cent band above or below the central parity rate each trading day.
The daily reference rate is determined from a weighted average of quotes submitted by designated market makers before the interbank foreign exchange market opens.
Analysts say the strengthening of the yuan reflects Beijing’s steady management of its currency amid global market volatility, with the move aimed at balancing export competitiveness and capital flow stability.
