Chinese Yuan has been strengthened further with ending at 7.9982 against the US dollar. It happened for the first time since a revaluation taken place last year. The strengthening of the Yuan came after the release of last week's semi-annual US Treasury report into global currency policies. When Chinese President Hu Jintao visited the United States last month, the main agenda was topped by trade and currency issues. The US always charged China for undervaluing its currency. It thinks that China is getting an unfair trade advantage.

China always insisted that although it wants to move to a more market-based forex system, any change will be gradual and be measured against its own best interests. Accordingly, it formulated its trading policies. The growth of Yuan against the US dollar can be attributed to the effective policies made by the Chinese government.

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The central parity rate is a weighted average price based on offers made each morning by the 11 market makers in the over-the-counter market.