The people’s Bank of China weakened the yuan to its lowest level in the last month

BEIJING, may 9. /Offset. TASS Nikolai Selishchev/. The people’s Bank of China (the Central Bank) lowered the exchange rate of the Renminbi (the official name of the yuan) to the us dollar by 90 basis points to the level of 6,9037 yuan per dollar. Therefore, it was minimal compared to the figures of the last 30 days.

The increase in the amplitude of fluctuations in the value of the yuan against the dollar began after the launch of the PRC government’s reform of the formation mechanism of exchange rate of these currencies. In August 2015, the Chinese Central Bank announced the decision “to optimize the method of calculation of” exchange rate in favor of increasing the role of market factors with a positive balance in foreign trade of China and the strong position of the RMB relative to the currencies of other countries.

By the end of 2015, the Renminbi was devalued against the dollar by 6%. In 2016, the exchange rate of the Renminbi against the U.S. currency fell another 6.7% and has updated a few minimum values over 8.5 years. Fluctuations in the exchange rate relative to the official parity rate set by the people’s Bank, must not exceed 2%.