Request a call back

Beijing let yuan rise against US dollar

The PBoC fixed on Friday the highest growth of its national currency against the US dollar since November 2015, and let the yuan continue to strengthen on the background of easy rate hikes in the US.


Medium rate of the pair was fixed at 6.4628, which is the highest medium rate since December 16. This point is equal by 0.52% to the previous one.


It is the third massive strengthening of medium rate since China untied its currency from the US dollar in 2005. Now the PBoC sets everyday a rate which permits deviation in domestic market within 2%.


Experts still have doubts that growth of the yuan will be long-term. Offshore yuan that has more trading freedom has finished weakly the decision of the central bank. In general, the yuan even returned to its starting zone.


It seems like some weakening of the US dollar was in favour of the yuan. But there is no clear presentation how medium rate is calculated.


Strengthening of Chinese currency could be a restrained factor for outflow of capitals from China. There is a tendency that local companies and private persons withdrew their capitals from China to pay off their debts denominated in the US currency. Slipping of China’s economy revealed assumption that the central bank will be forced to let the yuan fall.