BEIJING, December 18. /Corr. Roman Balandin/. The people’s Bank of China (the Central Bank) has once again lowered the rate of the national currency of China Renminbi (the official name of the yuan) against the dollar by 57 basis points to 6,4814 per unit is the lowest figure since June 2011.
The Central Bank of China lowers the rate for 10 days in a row for the first time since 2006.
Analysts attribute the actions of the people’s Bank with the need to prepare for the inclusion of the yuan in the basket of reserve currencies by the IMF (special drawing rights, Special Drawing Rights – SDR) in October next year, which could lead to increased demand for Chinese currency and a marked increase in its rate.
The reform of the formation mechanism of the yuan exchange rate against the dollar started on August 11th this year, when the Chinese Central Bank announced the decision “to optimize the method of calculation”. After that, the yuan within three days was devalued against the dollar in the amount of 4.6% to 6,40 for $1. Following this, the Chinese currency has strengthened, and on November 2 reached three-year high in 6,3154 for $1, but then its rate again began to weaken.
November 30, the IMF Board of Directors decided to include from October 1, 2016 yuan in its SDR basket. The state Council of PRC welcomed the decision and said it would continue “to ensure the stability of the Renminbi, keeping it at a reasonable, balanced level”.