The Chinese currency Renminbi, or the yuan, strengthened against the U.S. dollar for the sixth consecutive trading day on Friday.
The central parity rate of the yuan strengthened by 12 basis points to 6.5516 against the U.S. dollar, according to the China Foreign Exchange Trading System. In China's spot foreign exchange market, the yuan is allowed to rise or fall by 2 percent from the central parity rate each trading day. The central parity rate of the yuan against the U.S. dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day.
A sudden and sharp decline by the yuan early this month rattled global markets and fueled concerns about the Chinese economy. To assure global investors, Chinese officials have repeatedly stated that the country has no intention of pushing the value of the yuan down further to gain a competitive advantage.
In one of the latest remarks, Premier Li Keqiang said on Thursday that the Chinese government has no intention of boosting exports by devaluing the yuan. While talking with International Monetary Fund Managing Director Christine Lagarde on the phone, Li said the exchange rate of the yuan has remained basically stable against a basket of currencies and there is no basis for continuous depreciation.
"We will press ahead with the reform of the yuan exchange rate formation mechanism in line with the principles of independence, gradualism and controllability, enhance communication with the market, and keep the yuan exchange rate basically stable at an adaptive and equilibrium level," he said.
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