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.

Earlier on Monday, the PBOC set the yuan’s mid-point rate at 6.8673, stronger by 113 basis points from the previous session. Photo: EPA

Yuan shrugs off stronger fix to retreat against dollar

The yuan retreated on Monday against the US dollar, in both onshore and offshore markets, shrugging off a stronger fix by the People’s Bank of China.

In the spot yuan market in Shanghai, the US dollar bought 6.8896 yuan at 10.55 am, up 0.07 per cent from 6.885 late Friday.