Chinese Yuan Hits Highest Value in 16 Months

[Image source=Yonhap News]

[Asia Economy Reporter Donghyun Choi] The value of the Chinese yuan has reached its highest level in 16 months.

On the 3rd, the People's Bank of China, the country's central bank, set the yuan's reference exchange rate at 6.8319 yuan per dollar, down 0.08% from the previous day. The previous day's reference rate was 6.8376 yuan per dollar.

A decline in the yuan exchange rate means that the value of the yuan has risen. On this day, the yuan's value reached its highest point in 1 year and 4 months since May 13 of last year.

Amid the recent easing stance of U.S. monetary policy and the decline of the dollar index, the yuan's value is rising relatively against the dollar.

The rapid recovery of the Chinese economy from the impact of the novel coronavirus disease (COVID-19) is also contributing to the rise in the yuan's value.

The yuan's value has increased by more than 5% compared to its bottom in May.

Global investment banks predict that the yuan's upward trend will continue for the time being due to the ongoing dollar weakness and global capital inflows.

China Construction Bank expects the yuan to remain in the range of 6.7 to 6.9 yuan per dollar for the time being.

This content was produced with the assistance of AI translation services.