RMB flat as PBOC eases reference rate
Print Edition
THE renminbi closed nearly flat against the US dollar yesterday despite the Chinese central bank easing the reference rate by the most in three weeks ahead of the Brexit referendum.
The yuan closed at 6.5807 per US dollar as of 4:30pm in Shanghai yesterday, slightly weaker than Tuesday’s 6.5799 but strengthened from the central parity rate of 6.5935.
The People’s Bank of China yesterday tuned down the reference rate by 279 basis points, the largest daily drop since the end of May.
Analysts said the weaker central parity rate reflected market uncertainties ahead of the Brexit referendum on whether Britain stay in or leave the European Union. The weaker rate also showed the PBOC aims to let the market play a greater role in the yuan’s exchange rate.
“The market is generally volatile as the referendum draws near to decide whether Britain will stay in the European Union,” said Yin Dan, an analyst at CITIC Futures. “China’s central bank has also on various occasions voiced support for yuan (RMB) internationalization and exchange rate reforms.”
The 2015 annual report the PBOC released on Tuesday showed plans to allow foreign companies to issue RMB-denominated shares onshore and to unify the currency’s onshore and offshore exchange rates.
The steps will see further opening up of capital accounts and improve how exchange rates are formed, the PBOC said.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
