China dramatically strengthened the yuan to the dollar

© RIA Novosti / Alexander Demyanchuka in photobacteria yuan. Archival photoChina dramatically strengthened the yuan to the dollar© RIA Novosti / Alexander Demyanchuka the image Bank

The people’s Bank of China (Central Bank) on Tuesday has considerably strengthened the yuan to the dollar by 0.52%, after the Chinese currency recently fell to their lowest levels since mid-2017, according to the regulator.

Of the Central Bank on Tuesday set the exchange rate at the level 6,8360 yuan per dollar, down by 358 points less than on Monday, when the rate was 6,8718. The Chinese Central Bank amid heightened trade conflict between the US and China for more than a month gradually reduces the rate of the national currency to the dollar, thus in some days there was a slight strengthening of the yuan. Since last Friday, August 17, the Chinese currency strengthened for the third consecutive trading session.

Since the beginning of the year, the Central Bank of China slightly strengthened the exchange rate of the national currency, but in the last month, the yuan has declined, updating several times, the lows from July 2017 and January 2018. The people’s Bank assured that they will maintain the exchange rate at a rational and stable.

In August 2015 the people’s Bank of China weakened sharply, the yuan to the dollar (from 3% from 6.20 to 6.40), a shock to world stock markets. Later, the Chinese Central Bank focused on the stabilization of the yuan. After this happened three more waves to the weakening of the Chinese currency: in the winter of 2015-2016 (to 6.55), in July 2016 (to 6.67), and the third began in October 2016. After the first wave, the experts claimed that the Chinese Central Bank deliberately devalue the yuan to stimulate exports. The Chinese authorities have denied these allegations.