Posted On: June 11, 2012
The monetary unit of China made a late-session push on Monday against the world's reserve currency after trade data was better than forecast, according to The Wall Street Journal reports
Tempering gains of the renminbi were worries about China's economy. The currency's present value is lower than guidance provided by the People's Bank of China, which also is weighing on the Asian nation's monetary unit. The bank established central parity on Monday that was lower than Friday's rate.
"The central parity came as a surprise. We had thought the PBOC would let the dollar fall [against the Chinese yuan] by at least 50 pips because the trade data were much better than expected," a Chinese trader at a foreign bank told the news source. "It indicates that the Chinese authorities want to keep the yuan's exchange rate
steady. Apparently, the turmoil in the euro zone has made the PBOC very cautious."
This past May saw exports increase 15.3 percent as compared to the same period last year, according to the Chinese government. The month prior saw gains of 4.9 percent and forecasts called for 6.9 percent gains.
banks in the nation hosting the second-largest economy disbursed the equivalent of roughly $125 billion in loans last month.
Category: Industry News
Foreign Exchange Services for Business
With a focus on payment services, Western Union Business Solutions enables businesses of all sizes to send funds internationally through our global payment solutions.
See our available FX payment services