China's trade-weighted CFETS yuan basket index rises to its highest level since October 30, 2023.
The China Foreign Exchange Trade System (CFETS) yuan basket index, also known as the RMB (Renminbi) Index, is a trade-weighted index that tracks the value of the Chinese yuan relative to a basket of foreign currencies.
- basket includes the currencies of China's major trading partners
- CFETS yuan basket index is used to provide a reference against which the performance of the yuan can be measured, offering a more comprehensive view of its value than just comparing it to the US dollar
- composition of the basket, including the specific currencies and their respective weights, is periodically reviewed and adjusted by the People's Bank of China (PBOC)
- index is designed to reflect the relative changes in the yuan's value based on international trade and financial flows, rather than being pegged or closely tied to a single currency.
