The exchange rate of the US dollar against the Chinese currency, yuan, hit a record 1:7.9982 on Monday, the highest level since China appreciated its currency on July 21 last year.

 

According to a People's Bank of China announcement, the yuan's daily benchmark, or central parity, was 7.9982 against the dollar. On Friday, the rate was 8.0082.

 

The central parity is based on a weighted average of enquired prices from all market makers, including major domestic banks, before the market opening on each business day.

 

China raised the value of yuan by 2 percent and started linking it to a basket of foreign currencies last July, scrapping its decade-old peg to the US dollar. The yuan has since risen more than 3 percent.

 

(Xinhua News Agency May 15, 2006)