China’s Yuan Strengthens 10 Pips Against U.S. Dollar

Dragon Media News Desk

The central parity rate of the Chinese currency renminbi, or the yuan, strengthened by 10 pips against the U.S. dollar on Friday to 6.7878, according to the China Foreign Exchange Trade System.

The rate means that the central parity for Friday’s trading was set at 6.7878 yuan per U.S. dollar.

In China’s spot foreign exchange market, the yuan is allowed to rise or fall by up to 2 percent from the central parity rate on each trading day.

The central parity rate of the yuan against the U.S. dollar is determined on the basis of a weighted average of prices offered by market makers before the opening of the interbank foreign exchange market on each business day.

The central parity rate serves as a key reference point in China’s foreign exchange management system and provides the benchmark around which the yuan is allowed to fluctuate within the permitted daily trading band.