TOKYO, Nov 2 (KUNA) -- China's central bank on Monday raised the reference rate
for the Chinese yuan (renminbi) against the US dollar by the biggest one-day gain in 10 years.
As an illustrative example only, if the Maximum Acceptance Amount had been calculated based on the Reference Rate
on September 8, 2015, the Maximum Acceptance Amount would have been U.
The reference rate
is set by the Central Bank every three months and if exceeded it is considered a violation of the law.
The London Interbank Offered Rate (LIBOR) is the reference rate
at which large banks indicate that they can borrow short-term wholesale funds from one another on an unsecured basis in the interbank market.
The 1993 System of National Accounts recognized that some implicit intermediation services are provided to borrowers, and it measured these services based on the margin between loan rates and a reference rate
that represented the bank's opportunity cost of funds.
By increasing the so-called reference rate
, the central bank scrapped its rate used at an "exchange centre" that put goods importers in contact with exporters to exchange funds at a rate of around 25,000 to the dollar.
But as the rial floundered on the open market, eventually falling a year ago to around 36,000 rials to the dollar on the free market, the government created yet another rate of exchange--the reference rate
, which was set daily but was always about 24,500 rials to the dollar--that is, twice the official rate.
Summary: China's yuan rose to a 19-year high after the central bank strengthened the currency's reference rate
to a record as stocks rallied.
Travel Business Review-October 23, 2012--RBI Reference Rate
for US $ and Euro(C)2012] ENPublishing - http://www.
The reference rate
for a portfolio of loans (of varying types, maturities and rate-reset dates) is then a weighted average of rates on the individual loans.
75 per 100 yen, respectively, based on the reference rate
of the U.
BEIJING - China's central bank set the yuan's daily reference rate
for trading Tuesday at 6.