The People’s Bank of China (PBOC) continues to weaken the national currency amid large outbreaks of coronavirus infection in a number of provinces across the country, with the Yuan-to dollar exchange rate at 6.8065 on Friday, the lowest since September 2020, according to a statement on the PBOC website.
The average yuan-dollar exchange rate fell 263 basis points on Friday, down from 61 a day earlier. Friday’s exchange rate was the lowest since Sept. 30, 2020, when it stopped at 6.8101.
China’s central bank has been lowering the exchange rate since late April amid multiple outbreaks of coronavirus infection, particularly the lockdown in Shanghai, and the resulting disruptions in production and logistics. Thus, on April 26, the yuan showed its biggest drop since August 13, 2015, dropping by 681 basis points at once. In May, amid the improvement in the epidemiological situation, the yuan began to appreciate, and since mid-June there have been small fluctuations in the range of not more than 360 basis points.
The Chinese authorities announced in their socio-economic development plan released at the opening of the parliamentary session on March 5 the intention to keep the yuan stable at a reasonable and balanced level in 2022, as well as to implement a balanced monetary policy.
Earlier we reported that Britain’s consumer confidence index fell to a record low.