On December 11, the People’s Bank of China (PBOC) announced a further devaluation of the Chinese currency to RMB 6.4358 against the US dollar, compared to the official rate of RMB 6.4236 on December 10. With the latest devaluation, on December 11 the Chinese currency has been devalued to RMB 7.0388 against the euro, RMB 9.7551 against the British pound, RMB 4.6799 against the Australian dollar, and RMB 4.7163 against the Canadian dollar, compared respectively to RMB 7.0674, RMB 9.7520, RMB 4.6720 and RMB 4.7394 on December 10.
The Chinese currency had stood at RMB 6.3851 against the US dollar on December 4. Market participants state that the risk of further devaluation of the Chinese currency against the US dollar has been reduced to some extent. It is expected that the PBOC will likely hold the currency stable in the coming days, or at least no significant devaluation is anticipated.