FX.co ★ Chinese Yuan hits its all-time high

People’s Bank of China raised the Yuan rate against the greenback. The Chinese currency may well deviate from the set rate during upcoming trading sessions, the Xinhua News Agency informs. The central bank of China established the US dollar rate of 6.5883 against the Yuan. By the end of trading on January 24 the spot price of the US dollar constituted 6.5813 versus the Yuan which is quite close to an admissible low.
It is worth noticing that the central bank of China decided to bring the Yuan rate higher just few days after People’s Republic of China President Hu Jintao paid a visit to the USA. Despite Americans insisting upon taking steps towards the Yuan revaluation, Mr. Hu did not make any promises regarding such measures.
China has been eagerly lowering the rate of its national currency since the early 1990-ies with an aim to boost the competitiveness of its exporters. Since 2005 the strategy has undergone many changes with the Yuan having been revaluated for several times by over 20% in total.
Due to the global credit crisis the rate of the Chinese national currency was frozen. It was not until the end of the previous year that the central bank of China made a decision on unpegging the Yuan rate from that of the US dollar and rendering it 3% as stronger. Taking into consideration its January 24 rise, the Yuan has gained in total 3.73% for the last several months.