Asia (bbabo.net), - On Tuesday, the People's Bank of China (Central Bank) raised the national currency against the dollar by 638 basis points at once, to 6.9746 yuan. This was reported by TASS on December 6.
Thus, according to the agency, the yuan strengthened for the first time since September 26, leaving the zone of 7 yuan per dollar.
“Recently, the yuan exchange rate has undergone significant fluctuations. If we talk about external factors, this is due to the expected changes in the strategy of the US Federal Reserve and its restrictive monetary policy,” Wang Yuxin, an analyst at the Bank of China Research Institute, cites the agency.
Leading economist at China Minsheng Bank Wen Bin believes that these changes in the exchange rate are taking place against the backdrop of the optimization of anti-COVID measures in China, which "significantly improved sentiment in the domestic and foreign markets."
“The prospects for China's economic recovery are becoming more encouraging,” he added.
On September 26, the Chinese Central Bank lowered the exchange rate to 7 yuan per dollar for the first time since July 2020 - by 378 basis points, to 7.0298. By November 7, it had dropped to 7.2292 yuan, the lowest level since the end of January 2008.
The amplitude of fluctuations to the official parity set by the Central Bank of China should not exceed 2% per day. In 2020, the yuan strengthened against the US dollar by 6.2%, in 2021 - by another 2.5%. Since the beginning of this year, the official exchange rate has fallen by about 9.3%.