The people’s Bank of China: yuan exchange rate returns to a normal level

BEIJING, March 12. /Corr. Oleg Trutnev/. The Renminbi started to return to normal. This was stated by the head of the people’s Bank of China (Central Bank) Zhou Xiao-Chuan.

“I believe that now is the return (of the Renminbi) to the normal, reasonable baseline level. Unless there are some unexpected situation, think that this trend will continue”, – he said. “There is no urgent need to buy dollars,” said Zhou Xiao-Chuan.

The weakening of the Chinese currency against the dollar began after August 11 last year, when the Chinese Central Bank announced a reform of the exchange rate through increasing the role of market mechanisms. 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, but then its rate again began to fall: January 7 of this year the Renminbi for the first time since March of 2011 dropped to 6,5646 per dollar.