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It's been a month since China's central bank announced a further reform of the Renminbi exchange rate regime. Let's take a closer look at the yuan's performance this month.
In the past month starting from June 21st, the central parity of the yuan against the U.S. dollar rose by about 0.8 percent, compared with the closing price on the day before the central bank's announcement.
A week after the announcement of the exchange reform, the yuan appreciated by 0.55 percent against the dollar, again compared with the pre-announcement closing. A week later on June 2nd, appreciation climbed by 0.81 percent. But in the third week following the reform, the yuan depreciated by 0.76 percent against the dollar compared with the closing price on June 18th. The closing price of the yuan against the U.S. dollar on July 16th rose again by 0.81 percent.
The performance of the Renminbi exchange rate embodies the central bank's statement that the reform would not be "one-time revaluation, but based on market supply and demand".
Also in the past month, the U.S. dollar index has experienced a decline, contrary to the yuan's appreciation. This suggests the link between China's currency and the U.S. dollar is gradually weakening.