The Chinese Yuan keeps on advancing, acceleratedto its highest price in a week, while the central bank set a record daily reference rate, referring that before the G 20 summit the exchange-rate moves will be stimulated.
The People's Bank of China set the reference rate at 0.16% to reach 6.3198 per dollar, which is considered the highest level since July 2005, on the other hand, the Chinese government will keep the door open for further stimulus for the Yuan to increase its flexibility.
These certain and prudent decisions, which were made by the government and the central bank, indicates that China is confident in its economic growth forecasts, also china is determine on fighting and control the inflation.
As, The inflation in China was accelerated to 6%, which is risky and threatens the Chinese economy, along with the increase in the CPI index.
On the other hand, the Yuan advanced by 0.09 % to close at 6.3514 per dollar, while the currency is allowed to trade up to 0.5 %, yet there haven't been any trades since 3:33 p.m. in Shanghai as the currency hit the bottom of the daily trading range.