Chinese yuan strengthens

Beijing, Sep 1 (IANS) The central parity rate of the Chinese currency renminbi (yuan) on Tuesday strengthened by 141 basis points to 6.3752 against the US dollar, according to the China Foreign Exchange Trading System.

In China’s spot foreign exchange market, the yuan is allowed to rise or fall by two percent from the central parity rate each trading day, reported Xinhua news agency.

China’s central bank reformed the exchange rate formation system on August 11 to better reflect market development in the exchange rate of the Chinese yuan against the US dollar.

The central parity rate of the yuan against the US dollar is based on a weighted average of prices offered by market makers before the opening of the market each business day.

The central parity rate of yuan also refers to the closing rate on the previous day, in conjunction with supply and demand condition and movement of major currencies.

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