A significant jump in the value of the Chinese yuan against the dollar

The price of the Chinese yuan registered a very large rise against the dollar in today’s trade after a significant rise yesterday.

The indicative price of China’s two centres today was 7.1406 yuan per dollar, an increase of 206 Chinese peaks from yesterday’s level of 116 peib.

Chinese rules allow the yuan to rise or decrease by 2 per cent from the central bank’s indicative rate each day in the spot foreign exchange market.

The indicative rate of the yuan against the dollar is determined on the basis of the purchase rates offered by the major financial institutions before the commencement of InterBank Market transactions daily.

This comes as China’s central bank kept major lending rates unchanged yesterday as any further easing could weaken the currency.

The People’s Bank of China maintained the main interest rate on lending for a year at 3.45 per cent.

The bank cut the president’s interest rate by 10 key points last August.

The President’s five-year lending interest rate, the leading indicator of mortgage rates, was also maintained at 4.20 per cent for the fifth consecutive time.

Beijing is largely expected to meet this year’s growth target of about 5 per cent.