The people’s Bank of China (Bank of China) on Tuesday lowered its national currency – the yuan – against the dollar by 0.3% to 6,8495 yuan per dollar. This is the lowest since December 2008, reports TASS.
Fluctuations in the exchange rate relative to the official parity rate set by the people’s Bank, must not exceed 2%.
The Chinese currency has hit a six-year low against the dollar, falling to its lowest level since September 2010, on 11 November. To current figures, the rate declined eight days in a row.
In August last year, the Chinese Central Bank announced the decision “to optimize the method of calculation of” exchange rate in favor of increasing the role of market factors with a positive balance in foreign trade of China and the strong position of the RMB relative to the currencies of other countries.
After the introduction of the optimized techniques, the yuan weakened sharply against the dollar (up to 3% – from 6.20 to 6.40), triggering a shock in global stock markets.
This was followed by three more waves of the weakening of the Chinese currency: in the winter of 2015/2016 (to 6.55), in July 2016 (to 6.67), and the third began in October.
After the first wave the experts argued that the Central Bank deliberately devalue the yuan to stimulate exports. Premier Li Keqiang, Governor Zhou Xiaochuan and other officials denied these statements.