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BEIJING -
China Foreign Exchange Trade System (CFETS) on Friday released a yuan exchange
rate composite index that measures the currency's strength relative to a basket
of other currencies to better reflect the market.
The index
is calculated by comparing yuan to the average value of the 13 foreign
currencies, including the US dollar, Euro and Japanese yen, weighted according
to the trade volume with China, according to the CFETS.
On
November 30, the index stood at 102.93, which means that yuan has appreciated
2.93 percent compared to the level at the end of 2014, the CFETS said.
"The
data shows that although yuan has weakened against the US dollar in 2015...it
remains strong among major global currencies," said a commentary published
on the CFETS website.
The move
is part of efforts to offer a more comprehensive reflection of market changes.
Previously, market watchers have mainly fixated on the yuan-US dollar rate.
The CFETS
index will help the market to change the usual practice and gradually use the composite
index as a reference, which is conducive to keeping the rate stable at a
reasonable level, the commentary reads.
Friday's
move came as the Chinese currency has weakened against the US dollar for
several days. The central parity rate of yuan weakened by 122 basis points to
6.4358 against the US dollar on Friday, the lowest level in over four years.
In a
reassuring message to the market, Wang Chunying, an official of the State
Administration of Foreign Exchange told a press conference on Thursday that
current fluctuations of the exchange rate should not be seen as a sign of
devaluation.
Wang said
more consideration should be taken of the RMB multilateral exchange rate
against a basket of currencies and its long-term trend.
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