China reached record of RMB exchange rate against the dollar

The process of revaluation of the currency contiunes in China. According to China’s currency exchange, today RMB exchange rate rose by 33 basis points to a new record and reached 6.2858 per dollar. The previous record was recorded on March 23, when the yuan was revalued to the level of 6.29191 per dollar.

The national currency of the PRC began noticeably stronger after June 19, 2010 when the People’s Bank of China made a statement about the intention to intensify the reform of RMB exchange rate mechanism, increasing its flexibility. Since then, Chinese authorities routinely capture records in strengthening the national currency.

Beijing started the reform in July 2005 by removing the rigid peg of yuan to dollar. The most severe disagreements on the issue of RMB exchange rate came from the United States. U.S. experts argue that the yuan artificially undervalued by chinese authorities, which leads to a significant imbalance in bilateral trade in China’s favor. However, U.S. authorities have never officially called China a “currency manipulator”.

Beijing, in turn, says it will continue to gradually reform the mechanism of the currency exchange rate, but will not allow the other parties to put pressure on this issue.