The Chinese yuan, also known as the renminbi, is already convertible under the current account - the broadest measure of trade in goods and services. However, the capital account, which covers portfolio investment and borrowing, is still closely managed by Beijing because of worries about abrupt capital flows.

The yuan’s mid-point rate at 6.8456 against the US dollar, up 173 basis points or 0.25 per cent

Yuan weakens despite PBOC sets fix stronger

The Chinese yuan weakened Friday morning, despite that the Chinese central bank strengthened the yuan’s reference rate for a fourth straight day.

The onshore yuan in Shanghai traded down 0.16 per cent or 113 points at 6.8631 as of 10.50 am.