Yuan strengthens against greenback

The central parity rate of the Chinese currency renminbi, or the yuan, strengthened 22 pips to 7.1692 against the US dollar on Thursday, according to the China Foreign Exchange Trade 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 US dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day.

Central bank conducts reverse repos

China's central bank conducted 104.5 billion yuan ($14.58 billion) of seven-day reverse repos at an interest rate of 1.5 percent on Thursday. The move aims to keep liquidity in the banking system at an adequate level, the central bank said. A reverse repo is a process in which the central bank purchases securities from commercial banks through bidding, with an agreement to sell them back in the future.

Xinhua - China Daily