Yuan is going weaker

Yuan is going weaker

National banks in China receive more demands from the population to sell more dollars. Yuan is getting weaker.

This Thursday was very busy to the state banks in China who has to sell American currency on a double demand from Chinese people.

They had to propose the liquidity of dollar to save yuan from the deep falling.

Main banks in the state were trying to sell dollars at the foreign-exchange onshore market, according to the witnesses.

After yuan has lost 6.92 against the dollar in the morning trades, banks began to sell bucks to save its own national money from bankruptcy.

At the beginning of the day, Chinese People Bank had to settle the new currency rate. The midpoint was 6.9125 for a dollar. Even after the fix on Wednesday yuan was 6.9032 to the dollar.

Thursday’s market has opened at the 6.9131 for one dollar, and changed many hands to the 6.9188 till the launch time, hitting its new low in the 6.9207 right before it. Since January it is the weakest price of the yuan.

According to the traders, the situation began to change far before the national banks have opened their doors. American dollar rose to the highs after the job’s report this week and became stronger on the world markets. Chinese currency can’t compete with the firm dollar right now, even with the positive consumers’ report for the last month.

Shanghai analyst said that willingness of companies to buy greenback was very strong during the Thursday’s trades.