The central parity rate of the Chinese currency renminbi, or the yuan, strengthened 135 basis points to 6.8988 against the U.S. dollar Monday, according to the China Foreign Exchange Trade System.
Central bank governor Zhou Xiaochuan said Friday that Chinese currency would automatically stabilize this year on the back of a firming economy and rising confidence in the country's growth prospects.
"There will not be big changes in central bank policies in 2017, though the implementation and supervision will be more meticulous and precise," Zhou said at a press conference on the sidelines of the annual parliamentary session.
He also noted unpredictability in the foreign exchange market due to uncertainties both at home and abroad, saying fluctuations would be normal.
In the government work report delivered by Premier Li Keqiang, China pledged to continue market-oriented reform in the RMB exchange rate mechanism and maintain the currency's stable position in the global monetary system in 2017.
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.
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