Central Parity Rate of Yuan Against Dollar Set by PBOC Falls 105 Basis Points
Xu Wei
/SOURCE : Yicai
Central Parity Rate of Yuan Against Dollar Set by PBOC Falls 105 Basis Points

(Yicai Global) Sept. 13 -- The central parity rate of the yuan against the dollar dropped 105 basis points before the opening of the interbank market today, while yesterday's rate fell 280 basis points in the biggest decline since Feb. 20.

The China Foreign Exchange Trade System (CFETS), the interbank trading and foreign exchange division of China's central bank, the People's Bank of China (PBOC), set the yuan central parity rate at 6.5382 against the dollar, compared with the official close of 6.5350 yesterday.

The onshore spot exchange rates of the yuan against the dollar fell to 6.5362 at the close of night trading yesterday as the offshore spot exchange rates dipped to 6.5432.

The dollar index softened 0.031 points to 91.868 at 9.24 a.m. today.

The yuan's steep climb over the past two weeks has prompted PBOC to lower the purchase of foreign exchange reserves to zero and take other measures that signal its reluctance for the yuan to rise too fast, and to curb the currency's swift upward trajectory. The future yuan rate will fluctuate when foreign exchange supply and demand forces tend to balance, pundits said.

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Keywords: Central Parity Rate , CNY , CNH