The exchange rate of Chinese currency Renminbi, or yuan, experienced slight ups and downs in the first month since China allowed its currency to appreciate by a modest 2 percent on July 21.

By Aug. 19, yuan's exchange rate against US dollar and euro rose only 0.065 percent and 1.92 percent respectively. In this period, the central bank and State Administration of Foreign Exchanges (SAFE) promulgated 11 policies concerning foreign exchanges, the China Business News reported on Monday.

During the 22 trading days, yuan's value per US dollar rose in 13 days, and dropped in nine days, with the value reaching the maximum on Aug. 15. However, yuan's exchange rate with euro on the previous trading day dropped to the lowest level since July 21.

According to the closing price provided by the central bank, yuan's value against US dollar witnessed the biggest single day rise of 0.074 percent on Aug. 11, and dropped by the largest daily margin of 0.0654 percent on Aug. 8. Both dropped much lower than the 0.3 percent fluctuation limit set by the central bank.

During the four consecutive days from July 28 to Aug. 2, yuan's price against US dollars kept rising by altogether 0.059 percent.

From Aug. 9 to 15, yuan's price against US dollars again kept rising for five consecutive days by altogether 0.122 percent, according to the paper.

On July 26, China's central bank denied the possibility of further yuan appreciation, saying the 2 percent appreciation refers to an adjustment at the beginning of reform on yuan's exchange rate determination mechanism, which does not mean that there will be further revaluation of the yuan afterwards.

Immediately after the announcement, yuan's value against US dollar decreased for a while, but turned robust again.

The yuan's fluctuation over the past month has no evident characteristics, providing no chance for speculators, the paper said.

During the month, the fluctuation of yuan's exchange rates with major world currencies such as the US dollar, euro and Japanese yen were not synchronous with the changes of major currencies in the international market, showing yuan's value is adjusted with reference to a basket of currencies, it said.

When China raised the value of yuan to a level of 8.11 per US dollar on July 21, it scrapped the currency's peg to US dollar.

On Aug. 10, Zhou Xiaochuan, governor of China's central bank, said for the first time that the US dollar, Euro, Japanese Yen and won of the Republic of Korea constitute the basket of the currencies that will act as a reference for the Renminbi exchange rate.

Currencies of Singapore, Britain, Malaysia, Russia, Australia, Thailand and Canada are important for the yuan's exchange rate as well, Zhou said.

Source: Xinhua