The Central Bank of China rose 0.05% on Friday the yuan against the dollar, ending three days of consecutive devaluations , said the national operator of the currency market.
The rate set by the Central Bank of China to the yuan against the dollar rose to 6.3975 yuan per US dollar against 6.4010 yuan the previous day , said the China Foreign Exchange Trade System.
The exchange rate is posted on Friday over Thursday’s close, set to 6.3982 yuan.
This appreciation of the Chinese currency comes shortly after Bank China Central reassure financial markets by promising to maintain stable currency after the unexpected devaluation of almost 2% on Tuesday.
This devaluation, and the two consecutive reductions, caused losses in global financial markets and raised concerns on the health of the second world economy.
Beijing said these measures were the result of switching to a new method calculating the daily reference rate of the yuan , to bring the currency to its market price.
So far, Chinese authorities had argued that the price of the currency was based on information from market operators, but on Tuesday he said the central bank also be incorporated in the calculation of indicators such as the previous day closing , exchange market information and quotes of major currencies.
China maintains strict control over currency fluctuations , allowing floating band of 2% daily, with the price set at the beginning of the day.
AFP
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