The central parity rate of the Chinese currency, the Renminbi (Yuan), strengthened by 63 pips to 7.1089 against the U.S. dollar on Monday, according to data from the China Foreign Exchange Trade System (CFETS).
The central parity rate of the Yuan is determined daily, based on a weighted average of quotes submitted by market makers before the opening of the interbank market.
Under China’s exchange rate regime, the Yuan is allowed to fluctuate by up to two per cent above or below the central parity rate during each trading session.
Analysts say the latest movement reflects steady market confidence, supported by improved sentiment in China’s financial markets and policy measures aimed at stabilising the currency.
