China weakens official yuan rate to over 11-year low

TOKYO, China’s central bank on Thursday weakened the mid-point rate for the Chinese yuan (renminbi) against the US dollar at the lowest level in 11 years and three months.

The People’s Bank of China set the central parity rate, an official reference for daily trading, at CNY 7.0039 per dollar, down by 43 pips from Wednesday’s setting, according to the China Foreign Exchange Trading System.

It was the first time since May 2008 the central bank set the yuan’s reference rate against the dollar weaker than the key 7 level. In China’s spot foreign exchange market, the central bank fixes the central parity rate every morning and allows the currency to rise or fall up to 2.0 percent from the rate.

The yuan slid after US President Donald Trump said last week Washington will levy 10 percent tariffs on another USD 300 billion in Chinese imports from Sept. 1. When the offshore yuan tumbled to an 11-year low on the Shanghai foreign exchange market on Monday amid the worsening US-China trade friction, the US Treasury Department designated China as a currency manipulator.

Source: Kuwait News Agency