Chinese Yuan Edges Higher Against U.S. Dollar

RunWithRugs · 2026-02-27T16:43:34+00:00

China's yuan rose against the U.S. dollar, with the central parity rate set at 6.9228, indicating a deliberate strengthening. The currency is allowed to fluctuate within 2% of this rate, reflecting market conditions while maintaining control.

RunWithRugs

2026-02-27 16:43:34

Abstract generation in progress

(MENAFN) China’s yuan edged higher against the U.S. dollar Thursday, with the China Foreign Exchange Trade System setting the currency’s central parity rate at 6.9228 — a gain of 93 pips from the previous session.

The firmer fix signals modest but deliberate strengthening in the official reference rate, which forms the daily anchor for the world’s second-largest economy’s tightly managed currency.

Under China’s foreign exchange framework, the yuan is permitted to fluctuate no more than 2 percent above or below the central parity rate within any single trading session in the spot market — a mechanism designed to allow market movement while preventing sharp, destabilizing swings.

The daily reference rate itself is calculated each business day before the interbank market opens, derived from a weighted average of quotes submitted by designated market makers — a process intended to reflect prevailing market conditions while keeping Beijing’s hand firmly on the currency’s direction.

Thursday’s adjustment, though incremental, comes as currency markets remain sensitive to shifts in U.S.-China trade dynamics and broader dollar momentum.

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