ZCZC
BCN-08
CHINA-FOREIGN-EXCHANGE-RATE
Chinese yuan strengthens to 6.8508 against USD Monday
BEIJING, Aug. 27, 2018 (BSS/Xinhua) – The central parity rate of the
Chinese currency renminbi, or the yuan, strengthened 202 basis points to
6.8508 against the U.S. dollar Monday, according to the China Foreign
Exchange Trade System (CFETS).
The rise came after an announcement by CFETS on Friday that Chinese banks
have restarted “counter-cyclical” adjustment as part of the pricing mechanism
of the yuan’s central parity rate against the greenback.
It said that most of the foreign exchange (forex) market-making banks have
made the adjustment on their own initiative since the beginning of August to
offset procyclical sentiment amid a weakening yuan in the forex market.
The currency saw a softening trend during the past months in part due to a
stronger dollar and a volatile global trade climate, and there have been
lingering market expectations of continued slips.
To curb forex market fluctuations driven by irrational sentiment, China’s
forex regulator introduced the counter-cyclical adjustment factor to the
existing pricing model of the yuan’s central parity rate against the dollar
in May 2017.
After the market returned to normal with balanced capital flows, banks in
January rolled back the adjustment and shifted the counter-cyclical factor to
neutral.
In China’s spot foreign exchange market, the yuan is allowed to rise or
fall by 2 percent from the central parity rate each trading day.
The central parity rate of the yuan against the dollar is based on a
weighted average of prices offered by market makers before the opening of the
interbank market each business day.
The following are the central parity rates of the Chinese currency
renminbi, or the yuan, against 24 major currencies announced on Monday by the
China Foreign Exchange Trade System:
Currency Unit Central parity rate in yuan
U.S. dollar 100 685.08
Euro 100 797.77
Japanese yen 100 6.1625
Hong Kong dollar 100 87.273
British pound 100 881.82
Australian dollar 100 502.94
New Zealand dollar 100 459.04
Singapore dollar 100 502.41
Swiss franc 100 697.93
Canadian dollar 100 526.88
Malaysian ringgit 59.847 100
Ruble 983.90 100
Rand 207.82 100
Korean won 16,309 100
UAE dirham 53.570 100
Saudi riyal 54.703 100
Hungarian forint 4,057.09 100
Polish zloty 53.593 100
Danish krone 93.50 100
Swedish krona 132.91 100
Norwegian krone 121.43 100
Turkish lira 87.339 100
Mexican peso 274.40 100
Thai baht 477.02 100
The central parity rate of the yuan against the Hong Kong dollar is based
on the central parity rate of the yuan against the U.S. dollar and the
exchange rate of the Hong Kong dollar against the U.S. dollar at 9 a.m. in
international foreign exchange markets on the same business day.
The central parity rates of the yuan against the other 22 currencies are
based on the average prices offered by market makers before the opening of
the interbank foreign exchange market.
BSS/XINHUA/HR/1100