The central parity rate of the Chinese currency, the renminbi (yuan), fell slightly on Monday, weakening by 23 pips to 7.1405 against the United States dollar.
The China Foreign Exchange Trade System (CFETS) announced the new rate, which serves as the official reference point for daily trading. In China’s spot foreign exchange market, the yuan is allowed to move up or down by two per cent from the central parity rate each trading day.
The central parity rate is calculated based on a weighted average of quotes provided by market makers before the opening of the interbank market each business day.
The yuan’s latest adjustment comes amid ongoing global currency market volatility and continued focus on China’s economic outlook, as the country balances domestic growth targets with international trade pressures.
