Chinese yuan weakens against the US dollar

On Thursday, the central parity rate for the Chinese currency, the renminbi, commonly known as the yuan, experienced a decline of 83 pips, settling at 7.1299 against the US dollar. This information was provided by the China Foreign Exchange Trade System.

In China’s spot foreign exchange market, the yuan is permitted to fluctuate within a two percent range either up or down from the central parity rate on each trading day. This central parity rate, which serves as a benchmark for the currency’s value against the dollar, is determined daily based on a weighted average of the prices that market makers offer before the commencement of trading in the interbank market. This system ensures that the central parity rate reflects the most accurate and current market conditions at the start of each business day.