the Chinese Renminbi on Friday once again hit a six-year low against the U.S. dollar after the people’s Bank of China (PBOC, Central Bank) lowered it even is 0.17%.
the Regulator set the average exchange rate of the yuan to the dollar at around 6,7858, which is 122 points above the fixing on Thursday when the rate was 6,7736, reports RIA “Novosti”.
the appreciation of the yuan since mid-October is at its lowest level since September 2010 and on Friday, the newly updated six-year minimum.
last week the official representative of the State statistical Bureau of China Sheng Liuni said that the recent devaluation of the yuan due to external factors and the reason for the continuous depreciation of the Chinese currency.
As recalled by TASS, the reform of the formation mechanism of the RMB exchange rate against the dollar began in August of 2015. Chinese regulators then announced the decision “to optimize the method of calculation of” exchange rate in favor of increasing the role of market factors with a positive balance in foreign trade of China and the strong position of the RMB relative to the currencies of other countries.
fluctuations in the exchange rate relative to the official parity rate set by the people’s Bank, must not exceed 2%.
Later, the Chinese Central Bank focused on the stabilization of the yuan. After this happened 3 more waves of the weakening of the Chinese currency: in the winter of 2015-2016 (to 6.55), in July 2016 (to 6.67), and the third began in October.
After the first wave the experts argued that the Central Bank deliberately devalue the yuan to stimulate exports.
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