The decision of the people’s Bank of China on Friday set the yuan exchange rate against the dollar at maximum from the beginning of 2016 a mark, in addition, the Bank has poured into the financial system of the country’s 140 billion yuan (21,67 billion) through reverse REPO, the message of the regulator.
The average exchange rate people’s Bank of China has set at the level of 6,4585 yuan per dollar, which is 27 points below the fixing on Thursday when the rate was 6,4612 yuan per dollar, which was the previous maximum value of the Chinese currency against the dollar since the beginning of the year, reports RIA “Novosti”.
Thus, the Chinese currency against the dollar for a second day in a row is set at a maximum level from the beginning of 2016.
Earlier the Chinese President XI Jinping during a meeting with U.S. President Barack Obama on the sidelines of the nuclear security summit in Washington spoke out against the intentional devaluation of the national currency of China for the purpose of export promotion.
On the background of devaluation of the yuan to the U.S. dollar, the experts talked about the fact that the Bank of China is intentionally devaluing the national currency to stimulate exports. Premier Li Keqiang, the head of the people’s Bank (Central Bank) Zhou Xiao-Chuan and other officials have repeatedly denied these allegations and assured that China opposes the deliberate weakening of its currency.
The people’s Bank of China weakened the yuan to the dollar in the first week of 2016, more than 1.5%. This was the largest change rate of the yuan from August 2015, when the devaluation of the yuan the strongest effect on global stock markets and led to the fall of the major stock indexes of China by 5-6%. After heightened tension in the stock and financial markets the Chinese Central Bank has focused on stabilization of the yuan.
On Friday the Central Bank also conducted reverse repos for a term of seven days and a yield of 2.25%. On Thursday, the Central Bank provided the financial system of the country is still equal to 15.48 billion.
