BEIJING, December 29. /Corr. Roman Balandin/. The people’s Bank of China (the Central Bank) lowered the rate of the national currency of China Renminbi (the official name of the yuan) against the dollar at 114 basis points to 6,4864 per dollar. This is the lowest figure since may 2011.
On Monday the Central Bank of China announced the intention to continue reform of the formation mechanism of the yuan exchange rate. “It is necessary to promote the liberalization of interest rates and reform the formation mechanism of the yuan exchange rate, to maintain the basic stability of the Renminbi at a reasonable and balanced level”, – said the regulator.
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 per dollar. Following this, the Chinese currency has strengthened, and on November 2 reached three-year high in 6,3154 for 1 dollar, but then its rate again began to fall.
November 30, the IMF Board of Directors decided to include from October 1, 2016 yuan in its SDR basket.