China''s yuan weakens against US dollar

January 29, 2014

Beijing-China (Jan 29)   The Chinese yuan (renminbi) weakened against the US dollar on Wednesday with a central parity rate of CNY 6.1073 per the greenback, according to the China Foreign Exchange Trading System. The rate was down 0.02 percent from Tuesday's daily reference rate to the dollar. The People's Bank of China fixes the central parity rate, an official reference for daily trading, every morning, and allows the currency to rise or fall up to 1.0 percent from the rate.

Meanwhile, state-run Xinhua News Agency said Tuesday that the yuan stood firm amid fluctuations in some emerging economies' monetary markets as tightening monetary policy in developed countries put them to a test. Currencies in emerging economies, such as the Brazilian real and the Turkish lira have plummeted recently over fears about the US Federal Reserve's move to continue tapering stimulus and tightening credit conditions in China.
The yuan bucked the downward pressure as it has remained stable since the start of the year, and analysts attributed the yuan's resilience to China's mild inflation, stable growth, partially open capital account, and rich foreign exchange deposits, according to Xinhua. China's central bank said in early January that it would continue to take a prudent monetary policy to maintain stable growth of monetary credit and social financing. The yuan appreciated by 3 percent against the US dollar in 2013.

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