Moscow. December 17. The yuan exchange rate against the dollar reduced Thursday’s 10th session in a row, such a series of falls not seen since 2007. The market is dominated by fears that downward pressure on the yuan will increase, because of the divergence in monetary policy of the PRC and the US will spur capital outflows from China, says the Agency Bloomberg.
The people’s Bank of China (PBC, the Central Bank) on Thursday lowered the reference rate of the yuan to its lowest level since June 2011, bringing the decline for the last session to 1.4%.
At the auction in Shanghai, the yuan fell 0.13% to 6,4816 yuan/$1. Market rate in mainland China declined 1.3% over the past 10 sessions.
In Hong Kong the value of the yuan declined by 0.12% on Thursday, to 6,5467/$1.
Earlier this week, the NBK signaled her intention to change the regulation of the yuan at the expense of weakening its peg to the US dollar. According to an article published on the website of the NBK, the Central Bank would like to see the Renminbi account of the basket of currencies of major trading partners of the PRC instead of binding exclusively to the dollar.
The basket of currencies may include the US dollar, the Euro, the yen, and 10 other currencies, as noted in the NSC.
Exchange rates are a reflection of trade and investment relations with many countries, and the market should take into account the fluctuations of the yuan relative to a basket of currencies, the article says.
Rate Chinese national currency to the dollar fell this year by more than 4%.