The people’s Bank of China lowered its Central parity rate of the national currency to 6,7008 yuan per dollar. So cheap yuan is not worth since September 2010
The Central parity rate of the yuan, which is based on the weighted average price offered by market makers before the opening of the interbank market, fell by 230 basis points, from 6,6778 to 6,7008 yuan per dollar, according to the website of the Chinese foreign exchange trade system (CFETS). In comparison with the previous mark, the dollar rose by about 0.34 percent. According to the Agency “Xinhua”, recorded on Monday the people’s Bank of China (PBOC) Central parity rate reached the lowest level in six years — so cheap Chinese Central Bank did not appreciate the yuan since September 2010.
In the course currency trading on 10 October, the rate reached 6,7066 yuan per dollar. The last time above this mark, he was raised on 22 September 2010. Under current China rules the exchange rate of RMB may deviate from the Central parity rate of not more than 2%.
The depreciation of the yuan to the dollar, Xinhua connects with the growth of the probability to increase the base rate of the Federal reserve system of the United States. In comments CFETS is emphasized that fluctuations in the exchange rate of the yuan against the dollar are a normal process that will continue in the future.
Representatives of CFETS also said that simultaneously with the depreciation of the Chinese currency against the dollar rose slightly, the exchange rate of the yuan to a basket of currencies that includes US dollars, Hong Kong, Australia, Singapore, Canada and New Zealand, as well as the Euro, yen, Swiss franc, British pound, Russian ruble, Malaysian ringgit and Thai baht.
“In the long term reason for the depreciation of the yuan is not”, — stated in comments CFETS.
Until 2005 the Renminbi was tightly pegged to the dollar. From 1997 to 2005, he was detained by Chinese authorities at around 8.27 yuan per dollar. Since 2006, the rate determined in the auction, but the oscillations are limited to the established corridor. The historical maximum of the Renminbi was recorded in January 2014, when its value reached the level of 6,0395 yuan per dollar.
In June, China’s Central Bank has accused Western media of destabilization of the currency market of the country, the promotion of the game against the yuan, as well as introducing the reader astray, calling reports about the intention of the Central Bank of China to weaken the yuan to 6.8 per dollar untrue. And at the end of January 2016, the China suspected financier George Soros in the actions aimed at devaluation of the national currency of the PRC. The Soros Foundation had earlier predicted the depreciation of Asian currencies and the “imminent hard landing” of Chinese economy.