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The Chinese yuan recorded a small gain against the US dollar on Wednesday, Xinhua reported, citing China Foreign Exchange Trade System.
The central parity rate, a reference point set by the People’s Bank of China (PBC), strengthened by three pips to 7.1025 yuan against dollar.
It is important to note that the yuan can fluctuate within a band of two per cent above or below the central parity rate in China’s spot foreign exchange market.
While the increase is minor, it suggests a slight strengthening of the yuan relative to the US dollar, as per the statement.
However, the central parity rate is determined by a weighted average of prices offered by market makers before the opening of the interbank market each day.
