(Yicai Global) April 8 -- The Chinese yuan has started the week by strengthening on the back of the nation's increasing foreign exchange reserves.
The onshore yuan-dollar spot rate opened at 6.7139, which was 46 bips firmer than a previous trading day's close. The offshore yuan, which is not restricted by the central parity rate, was 6.7207 in the morning.
China's forex reserves rose USD8.6 billion, or 0.3 percent, to USD3.1 trillion last month, rising for the fifth consecutive month, according to the State Administration of Foreign Exchange.
Despite rising volatility in the global financial market, China will maintain stable forex reserves with its economy running within a reasonable range, according to Wang Chunying, chief economist at the SAFE.
The People's Bank of China set the central parity rate between the redback and the US dollar at 6.7201 today, 146 basis points weaker for the yuan in comparison to the previous trading day.
The China Foreign Exchange Trade System, the interbank trading and foreign exchange division under the central bank, fixes the benchmark on the morning of each business day. Spot rates may deviate 2 percent above or below the figure.
Editor: Emmi Laine