© Reuters. The People’s Bank of China sets the price of the dollar against the yuan at 7.1174
Arabictrader.com – The People’s Bank of China decided this morning, Thursday, to set the exchange rate against the US dollar at 7.1174 yuan per dollar. Expectations were that it would reach 7.1976 yuan. The pair’s closing price yesterday’s session reached 7.1965 yuan. The bank also pumped 100 billion yuan into operations. 7-day market buyback, with a return of 1.8%.
It should be noted that the Bank of China influences the price of the US dollar by linking the value of its currency (the yuan) to the dollar currency, as the bank uses a fixed exchange rate policy, which differs from the free exchange rate used by the United States and many other countries, while leaving a margin. Move for China’s currency to move in a narrow range.
The Bank of China manages the value of the yuan by keeping it constant against a basket of currencies of countries that are considered partners of China. The basket is measured in the dollar price, given that the United States is China’s largest trading partner.
2024-01-18 07:12:00
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