BEIJING, December 31. /Corr. Roman Balandin/. The people’s Bank of China (the Central Bank) has lowered today the national currency Renminbi (the official name of the yuan) against the dollar by 41 basis points to 6,4936 per unit. This new minimum level since may 2011.
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Earlier, China’s state Council and the people’s Bank of China stated the need to maintain the stability of the Renminbi, keeping it at a “reasonable and balanced” level. While the regulator continues to gradually increase the role of market factors in calculating the course.
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 yuan for $1, 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. Analysts indicate that this solution could also necessitate some weakening of the yuan, as the entry into the basket of reserve currencies will increase demand and cause growth rate.