(Yicai Global) Feb. 12 -- The central parity rate of the yuan against the dollar is 270 basis points below yesterday's in its lowest reading since Jan. 25.
The China Foreign Exchange Trade System (CFETS), the interbank trading and foreign exchange division of China's central bank, the People's Bank of China (PBOC), set the yuan central parity rate at 6.7765 against the dollar, as against yesterday's official close of 6.7804.
The yuan began its retreat against the greenback on Feb. 1. This coincided with a forceful rebound of the US dollar index. The redback rose a cumulative 2.6 percent against the buck on the onshore market last month.
The yuan has leeway to rise or fall by 2 percent in deviation from the central parity rate each trading day in China's spot foreign exchange market.
The central parity rate of the yuan against the US currency rests on a weighted average of prices offered by market makers before the opening of interbank trading each business day.
Editor: Ben Armour