Chinese Yuan Rises to 7.1746 vs USD on Tuesday
BEIJING, June 17 (Xinhua) -- The central parity rate of the Chinese currency, the renminbi or yuan, saw an increase of 43 basis points, reaching 7.1746 against the U.S. dollar on Tuesday. This adjustment reflects ongoing dynamics in the foreign exchange market as the yuan continues to respond to various economic factors.
In the context of China’s spot foreign exchange market, the yuan is permitted fluctuations of up to 2 percent in either direction from the determined central parity rate each trading day. This mechanism provides a way for the currency to adjust in response to market demands and conditions.
The central parity rate itself is derived from a weighted average of prices provided by market makers prior to the opening of the interbank market on each business day. This method ensures that the rate reflects prevailing market conditions and sentiments.
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