More People buying Chinese yuan at Money changers in Singapore as currency weakens

The currency, also known as renminbi, is currently trading near its best levels against the Dollar this year at 6.5241, having slumped to 6.5800 earlier in 2016.

Efforts by Chinese policymakers to shore up confidence in the economy have helped somewhat.
Singapore as the Chinese yuan drops to a six-year low against the Singapore Dollar,Some money  changers here are seeing more people who that yo buy the currency.

A check with some of them on Wednesday (Agu 7) showed that they are also seeing an increase in the number of customers wanting to buy British pounds in the past few days.

At Aliffan Agency Money changer in the Arcade at Raffles Place, there has been a 30 to 40 per cent
increase in the number of customers looking to buy Chinese yuan since Tuesday.

                                                     The People's Bank of Chaina

The people's Bank of Chaina manages the yuan's value. It keeps it fixed to a basket of currencies reflecting its trading partners. The basket is weighted towerd the Dollar since the United States is Chaina's largest trading partner. It keeps the yuan's value within a 2% range against that currency 

baskat.

The exchange rate tumbled 1.3% to 7.0344 a Dollar at 4:45 p.m. local time after the People's Bank of Chaina set its daily reference rate at a weaker level than 6.9 for the first time since December. The

offshore yuan sank as much as 1.9% to a record low, while the Shanghai Composite Index closed 

1.6% lower.

The yuan is not freely convertible and the Chinese Government limits its movement against the

US Dollar to a 2% range on eigher side of a central parity rate that the Central Bank sets each day

to reflect market trends and control volatility.

That managed float system limits volatility: the currency has remained confined between 6.1 and 7.1 

yuan to the Dollar for the last 5 years.

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                                                      Bhaskar Biswas