(Yicai Global) July 11 -- The central parity rate of the yuan against the US dollar nosed up 25 basis points before the opening of today's interbank market.
The China Foreign Exchange Trade System, the interbank trading and foreign exchange division of China's central bank the People's Bank of China, set the yuan central parity rate at 6.6234 against the dollar after the official close of 6.6230 yesterday.
The yuan-dollar offshore spot exchange rates dropped to 6.6919 from 6.6502 at 8.57 a.m. today.
The US government announced 10 percent tariffs on USD200 billion in Chinese goods yesterday, including seafood, agricultural produce, fruits and consumer goods. These duties will not take immediate effect, however, but will be reviewed for two months, and subject to a hearing from Aug. 20 to 23.
The yuan-dollar central parity rate has risen steeply in recent days, and has now reached a reasonable level, market players said. The exchange rate is expected to become more flexible in future, the central bank said.