Foreign Exchange News
- RMB drops against U.S. dollar
Date: 22-Jan-2007 Sources: (Xinhua Online)
The value of the Renminbi (RMB) yuan dropped slightly against the U.S. dollar on Friday after rising for four days in a row earlier in the week, according to the Chinese Foreign Exchange Trade System.
The central parity rate of the RMB was 7.7788 yuan to the dollar on Friday, down by 30 basis points from 7.7758 yuan on Thursday.
The central parity rate was 7.7938 yuan on Monday, 7.7895 yuan on Tuesday and 7.7798 on Wednesday.
The central parity rate of the RMB to the Hong Kong dollar dropped by 60 basis points to 0.99574 yuan on Friday.
The value of the yuan overtook the HK dollar on Monday for the first time, with a central parity rate of 0.99945 yuan to one HK dollar. The central parity rate was 0.99634 yuan on Thursday.
The central parity rate against the euro was 10.0866 yuan on Friday, 274 basis points lower than Thursday's 10.0592 yuan. The central parity rate against the British Pound was 15.3579 yuan, down 422 basis from Thursday's 15.3157 yuan.
There was no immediate comment from authorities on the fall.
Insiders have ascribed the recent appreciation of the RMB to China's growing trade surplus and foreign exchange reserves.
The country's trade surplus last year soared 74 percent to a record 177.47 billion U.S. dollars.
China's foreign exchange reserve reached 1.06 trillion U.S. dollars at the end of 2006, the People's Bank of China announced on Monday.
The figure, which exceeds one trillion U.S. dollars for the first time, is 30 percent up on the end of 2005, according to the central bank.
As of Thursday, the RMB had risen by more than 4.3 percent since China's reform of the exchange rate system in July 2005.
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