China’s Foreign Exchange Trade System (CFETS) has set a wider trading band between the Chinese RMB Yuan and Russian Ruble stating this was “in accordance with the requirements of market development”.
It widens the daily trading band for the RMB exchange rate with the Ruble, allowing the currency cross to trade 10% in either direction of a daily midpoint set by China’s central bank, up from the previous 5%. CFETS said the new trading band was set “with the approval of the People’s Bank of China and the State Administration of Foreign Exchange”. The move took effect from Friday.
The trading band change is a practical response to support trade between China and Russia, and the recent volatility of the Ruble, which has depreciated about 36% this year against both the US Dollar and the RMB Yuan. China’s currency has remained steady at about RMB6.3 against the Dollar.
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