China's Yuan Gains Ground Against U.S. Dollar
Under China's regulated foreign exchange framework, the yuan operates within strictly defined parameters in spot market transactions. Trading rules permit the currency to fluctuate up to 2 percent above or below the officially designated central parity rate during each daily trading session, providing controlled flexibility while maintaining governmental oversight of currency movements.
The central parity rate itself represents a calculated benchmark derived from a sophisticated pricing mechanism. Each business day, before the interbank foreign exchange market commences operations, designated market makers submit their proposed exchange rates. These individual price quotes undergo a weighted average calculation, which then establishes the official central parity rate that guides the day's trading activity and serves as the reference point for allowable currency fluctuations throughout the session.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
