IANS | 01 Sep, 2015
The central parity rate of the Chinese currency renminbi (yuan) on
Tuesday strengthened by 141 basis points to 6.3752 against the US
dollar, according to the China Foreign Exchange Trading System.
In
China's spot foreign exchange market, the yuan is allowed to rise or
fall by two percent from the central parity rate each trading day,
reported Xinhua news agency.
China's central bank reformed the
exchange rate formation system on August 11 to better reflect market
development in the exchange rate of the Chinese yuan against the US
dollar.
The central parity rate of the yuan against the US dollar
is based on a weighted average of prices offered by market makers
before the opening of the market each business day.
The central
parity rate of yuan also refers to the closing rate on the previous day,
in conjunction with supply and demand condition and movement of major
currencies.