Chinese Yuan Gains Ground Against U.S. Dollar
(MENAFN) The central parity rate of China’s currency, the renminbi (yuan), surged by 80 pips to reach 7.1108 against the U.S. dollar on Wednesday, data from the China Foreign Exchange Trade System revealed. This notable uptick reflects growing market confidence amid ongoing economic developments.
In China’s spot foreign exchange market, the yuan’s value is permitted to fluctuate within a 2 percent band above or below the central parity rate each trading day. This mechanism helps maintain relative stability while allowing for market-driven adjustments.
The central parity rate itself is derived from a weighted average of prices submitted by designated market makers prior to the opening of the interbank market each business day, ensuring it reflects prevailing market conditions accurately.
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