On Monday, the Chinese currency, the renminbi or yuan, gained strength against the dollar as its central parity rate increased by 88 pips to 7.1201. In China’s spot foreign exchange market, the yuan has the flexibility to fluctuate within a two percent range from the central parity rate on a daily basis.
The central parity rate is determined by a weighted average of market makers’ prices prior to the opening of the interbank market each business day.
