On Monday, the central parity rate of the Chinese currency, the renminbi, commonly known as the Yuan, appreciated by 219 pips, reaching a level of 7.1139 against the US dollar. This adjustment was reported by the China Foreign Exchange Trade System.
In the context of China’s spot foreign exchange market, the Yuan is allowed to fluctuate within a margin of two percent above or below the central parity rate on a daily basis. This central parity rate, which serves as a reference point for the currency’s value, is calculated each business day based on a weighted average of the prices provided by market makers before the interbank market opens. This system ensures that the daily exchange rate reflects a balanced view of market conditions while allowing for controlled fluctuations.