Business
12:10, 12-Sep-2017
Chinese yuan weakens to 6.5277 against USD Tuesday after 11 day increase
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After 11 days of consecutive increases, the central parity rate of the Chinese currency yuan (RMB) - weakened 280 basis points to 6.5277 against the US dollar on Tuesday, just one day after China scrapped the reserve requirement on yuan forward settlements.
Under the former rules, financial institutions must set aside 20 percent of the previous month’s yuan forwards settlement amount to function as foreign exchange risk reserves.
This latest move by the central bank the People's Bank of China is set to prevent unpractical expectation on currency appreciation when the strong yuan has made a negative influence on China’s exports, Li Qilin, principal researcher at Lianxun Securities said on Monday.
The central parity rate of the yuan against the US dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day.