Chinese Foreign Exchange Trading System has announced that Yuan, the Chinese currency is hitting a new high against US dollar on Tuesday. RMB or the Renminbi is the yuan’s central parity rate. On Tuesday, it stood at 7.6427 yuan to one U.S. dollar. Thus, it recorded a profit of 95 basis points from the reference rate of Monday at7.6525 to dollar.
Value of yuan exceeded second time by 7.65. 7.65 mark was challenged to achieve 7.6488 on May 30. In the last trading day of the year 2006, Chinese currency climbed from 7.8087 yuan to one U.S. dollar, i.e. 1,660 basis points.
China halted peg of yuan for greenback from 21July, 2005. Since then accumulative appreciation has enhanced 7.5 percent. On May 18, the central bank or The People’s Bank of China made an announcement of widening the floating band of yuan against U.S. dollar. This would be mainly for the daily spot trading on the interbank market. It would be from 0.3 percent to 0.5 percent effective from May 21.
In the coming time, there will be a great rise in the value of currency of China, due to its fast growing economy with low inflation. In order to achieve central parity rate of 10.3165 yuan against one euro, 274 basis points were lost by yuan on Tuesday as compare to previous trading day. To attain 6.2781 yuan against 100 Japanese yen, it moved down 68 basis points.
Image:chinadaily
Via:english.people
