Yuan has updated its minimum since March 2011

Almaty. May 25. Silkroadnews – Yuan has updated its minimum since March 2011, TASS writes.

“On Wednesday the People’s Bank of China (Central bank) lowered the national currency renminbi (the yuan official name) exchange rate to the dollar by 225 points to 6.5693 per unit. This is a new minimum value recorded since March 2011,” the publication says.

The senior manager at Baoshang Bank Wan Ho suggests the regulator is getting ready for a possible increase in interest rates by the US Federal Reserve System (FRS).

“It is a proactive measure to allow the People’s Bank of China to support the stability of the financial system in case of rate increase,” the expert notes.

In his turn Wang Jinhui, the economist at Southwest Securities, says Beijing does not seek to depreciate the yuan.
“Some people think the national currency undervaluation allows China to boost the exports. However, an excessive undervaluation of the renminbi to the dollar stimulates the outflow of capital from the market and this is not what the authorities are interested in,” he said.

Previously, the State Council and the People’s Bank of China flagged a need to maintain the RMB exchange rate stability, having kept it at a “reasonable and balanced” level. With this the regulator still continues to gradually increase the role of market forces in the calculation of the exchange rate.