(Yicai Global) Feb. 26 -- The People's Bank of China has fixed the yuan's central parity rate against the dollar 179 bips stronger today, marking a seven-month high against the greenback.
The China Foreign Exchange Trade System, the interbank trading and forex division of the central bank, set the yuan central parity rate at 6.6952 against the dollar, compared with yesterday's spot market close of 6.6941.
In the Chinese forex market, spot trades must value the yuan at 2 percent above or below the day's central parity rate.
The redback has been gaining on the dollar ever since Chinese President Xi Jinping and United States President Donald Trump agreed to a 90-day tariff truce at the G20 summit in Buenos Aires late November, giving officials on both sides chance to work out a deal and avoid a full-fledged trade war between the world's two biggest economies.
It has had a strong start this week after a Chinese delegation to the US said on Feb. 24 that high-level officials from the two nations had held talks in Washington and made "substantial progress" in their bid to diffuse tension as the deadline for their cease-fire looms.
Washington was scheduled to hike the 10 percent additional tariff on USD250 billion of Chinese imports to 25 percent on March 1 -- delayed from Jan. 1 after the G20 summit -- but Trump said in a tweet on Feb. 24 that he "will be delaying" the plans further due to the "very productive talks" with China over the weekend.