China’s yuan hits 6-year low record

On Friday, the China Foreign Exchange Trade System (CFETS) reported that the Chinese yuan has weakened 122 basis points to 6.7858 against the US dollar, hitting a six-year record low against the currency.

In China's spot foreign exchange market, the yuan is allowed to rise or fall by 2 percent from the central parity rate each trading day. The central parity rate of the yuan against the dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day. According to analysts, despite short-term fluctuations due to the impact of the USD, the yuan still sees overall stability and there is a low possibility that the currency could lose its value unexpectedly.

Source: VOV5