The Chinese currency, Renminbi (Yuan), strengthened by 49 basis points to 7.1322 against the U.S. dollar on Monday.
The China Foreign Exchange Trade System (CFETS), which disclosed this, said the central parity rate of the Yuan against the dollar is determined daily based on a weighted average of prices offered by market makers before the opening of the interbank market.
Under China’s spot foreign exchange system, the Yuan is permitted to fluctuate within a two per cent band above or below the central parity rate each trading day.
The adjustment comes as part of ongoing market operations designed to maintain stability in the country’s foreign exchange market amid global currency shifts.
