The People’s Bank of China (PBoC) announced on the 9th that it lowered the yuan’s standard against the dollar for two consecutive trading days, reflecting the economic recovery trend, the difference in interest rates at home and abroad.
PBoC lowered the yuan’s benchmark by 0.0030 yuan and 0.05% from 1 dollar=6.4755 yuan on the 9th.
The yuan’s benchmark was 100 yen = 5.8771 yuan, up 0.0199 yuan and 0.34 percent from 5.8970 yuan over the weekend. It has appreciated in two trading days.
In the Shanghai foreign exchange market, the yuan was traded at 1 dollar=6.4745-6.44750 yuan and 100 yen=5.8814-5.8823 yuan, respectively, at 9:49 a.m. (10:49 Korean time).
The yuan closed at 1 dollar = 6.4791 yuan and 100 yen = 5.8923 yuan respectively on the night of the 9th.
The People’s Bank of China announced the yuan’s benchmarks for other major currencies at €1=7.689 yuan, Hong Kong dollar=0.83401 yuan, British pound=9.0012 yuan, Swiss franc=7.0861 yuan, Australian dollar=4.8483 yuan, Singapore dollar=4.7932 yuan, and 1 yuan=176.82 yuan.
Meanwhile, the People’s Bank of China manipulated the open market through reverse repo transactions on Wednesday, supplying liquidity of 10 billion yuan (about 1.76 trillion won) to the market.
The net inflow of liquidity is zero because the reverse repo, which expired on the same day, is 10 billion yuan.
Last week, the People’s Bank of Korea released 50 billion yuan in liquidity through reverse repo manipulation but actually absorbed 60 billion yuan as 110 billion yuan mattered.