|China Hits Record High against U.S. Dollar|
|by Tom McGregor||Mon, Oct 11, 2010, 09:08 am|
On Monday, the value of the yuan, China’s currency Remninbi, struck a record high against the U.S. dollar as the central parity of the yuan was set at 6.6732 per U.S. dollar, as disclosed by data released by the China Foreign Exchange Trading System.
China Radio International (CRI) reports that, “Monday’s central parity rate beat the previous record of 6.6830 on Oct. 8. The yuan has picked up its strength against the U.S. dollars and seen increased volatility in the trading days since the People’s Bank of China (PBOC), the central bank, announced on June 19 this year to increase exchange rate flexibility.”
The Chinese currency has strengthened against the U.S. dollar by about 2.26 percent from the rate of 6.8275 per U.S. dollar, which was set before the PBOC’s pledge to raise flexibility, based on Monday’s central parity.
During each trading day, the yuan can increase or decrease 0.5 percent from the central parity rate on china’s foreign exchange spot market.
According to CRI, “China would continue reform of the formation mechanism of its currency exchange rate to improve its flexibility, but will do so in a gradual way. Zhou Xiaochuan, governor of People’s Bank of China, China’s central bank, said in Washington Sunday.”
To read the entire article from China Radio International, link here:
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