(Yicai Global) Feb. 20 -- China's central bank strengthened the Chinese yuan against the US dollar this morning. The lender's deposits of foreign currencies have slightly decreased last month, which may put devaluation pressures on the yuan. 

The People's Bank of China set the yuan-dollar central parity rate at 6.7558, which is 84 basis points stronger than yesterday. The redback may trade 2 percent up or down from this midpoint. 

The onshore spot rate opened at 6.7341, 259 basis points stronger than at the close yesterday. The offshore spot exchange rate started off flat at 6.7446 this morning.

China's yuan funds outstanding for foreign exchange declined by CNY1.2 billion (USD178.4 million) to CNY21.3 trillion in January, PBOC's latest data shows. This measure for capital inflows comes from the PBOC's purchases of foreign currency from the country's lenders, generated by a trade surplus and foreign investment. 

The funds remained basically stable, mainly due to the recent stability of yuan's exchange rate and even a 2.4 percent appreciation last month, said Er Yongjian, the chief financial analyst of the Bank of Communications Financial Research Center. 

PBOC's yuan funds outstanding for foreign exchange began to decrease significantly last August. In September, these funds dipped by CNY191 billion, and in October, by CNY91.5 billion, which coincided with the strongest depreciation pressure for the yuan.

Editor: Emmi Laine