SHANGHAI (Reuters) - China’s central bank set the yuan’s daily mid-point at 6.8275 against the dollar on Monday, unchanged from the mid-point last Friday, the day before Beijing said it would allow the yuan to trade more flexibly.
Mid-point Previous day’s mid-point Previous day’s close
The market had expected a strengthening of 5 to 10 pips for Monday’s central bank mid-point after the announcement on Saturday.
The People’s Bank of China (PBOC), the Chinese central bank, issues the mid-point data through the Chinese interbank market, the China Foreign Exchange Trade System (www.chinamoney.com.cn).
The yuan may rise or fall 0.5 percent from its mid-point each day, but it has moved only a small fraction of its band in most trading sessions since it was revalued by 2.1 percent to 8.11 per dollar on July 21, 2005.
In the three years following the revaluation, the Chinese central bank allowed the yuan to appreciate a further 19 percent against the dollar. The yuan’s traded peak since the revaluation was 6.8099, reached on Sept. 23, 2008.
Since July 2008, however, the central bank has used the mid-point to keep the yuan at a virtual peg to the dollar within a narrow 100-pip range, to protect China’s economy as it confronted a slowdown due to the global financial crisis.
Reporting by Lu Jianxin and Jason Subler