China lifts exchange rate of US-dollar again

Baku. 16 November. REPORT.AZ/ People's Bank of China PBC has increased official exchange rate of the US dollar once again and confirmed at the level of 6.8592 yuan. 

Report informs citing the TASS, this is the highest limit since 19 August 2008. Notably, Chinese yuan continue to fall against dollar 9 days in a row.

PBC applied such a mechanism of monetary policy in December 2015. In cash foreign exchange market exchange rate is CNY 6.87 / USD at the moment.

Notably, PBC has decided to optimize exchange rate of yuan since August 2015, explaining that yuan is more stable compared to other currencies. During this period, the dollar's exchange rate increased by 11%.from 6.20 CNY / USD level. The minimum level of the exchange rate recorded in January 2014 (1.04 CNY / USD), while the maximum limit in 1995-2005 (8.28 CNY / USD). Currently, the exchange rate is 17% lower than the maximum rate.

Analytical Group of Report believes CNY/USD rate will reach 7,00 and even exceed it by the end of the year. Devaluation of yuan by PBC could force United States to introduce additional customs duties. Thus, US government has repeatedly called on China to refrain from manipulating with exchange rate of the yuan. Current situation will allow newly-elected president of the United States Donald Trump to put restrictions on imported goods from China. US dollar rate may reach 7.70 CNY / USD until the end of the year.