Chinese Yuan Edges Lower Against U.S. Dollar
(MENAFN) The Chinese yuan’s official midpoint rate declined slightly on Wednesday, as the central parity rate was set 19 pips weaker at 7.1108 against the U.S. dollar, according to data from the China Foreign Exchange Trade System (CFETS).
This daily adjustment, announced by China's central bank, reflects a marginal depreciation of the renminbi and comes amid broader market scrutiny of currency movements in the region.
In China’s managed floating exchange rate system, the yuan is permitted to trade within a 2% band above or below the central parity rate in the country’s spot foreign exchange market. These boundaries are designed to allow a degree of flexibility while maintaining regulatory control over volatility.
The central parity rate itself is determined based on a weighted average of market-maker quotes collected before the opening of the interbank market each trading day.
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