China’s yuan edges up slightly against US dollar

The Chinese yuan recorded a small gain against the US dollar on Wednesday, Xinhua reported, citing China Foreign Exchange Trade System.

The central parity rate, a reference point set by the People’s Bank of China (PBC), strengthened by three pips to 7.1025 yuan against dollar.

It is important to note that the yuan can fluctuate within a band of two per cent above or below the central parity rate in China’s spot foreign exchange market.

While the increase is minor, it suggests a slight strengthening of the yuan relative to the US dollar, as per the statement.

However, the central parity rate is determined by a weighted average of prices offered by market makers before the opening of the interbank market each day.