CRI在线收听:China Introduces New Yuan Index

The China Foreign Exchange Trade System, an arm of China's central bank, has introduced a new exchange rate index.

The CFETS RMB Index will measure the yuan's performance against a basket of 13 currencies, with weightings based mainly on international trade.

The dollar has the largest weighting with about 26 percent, followed by the euro and the yen at 21 percent and 14 percent respectively.

While announcing the launch on Friday, the central bank said yuan fluctuations shouldn't be measured in terms of the U.S. dollar alone, and exchange rates are a reflection of trade and investment with multiple countries.

On Monday, the central parity rate of the renminbi weakened for the sixth consecutive day to its lowest level against the U.S. dollar since July 2011.

For more on the new index, CRI's Bob Jones earlier spoke with Professor Liu Baocheng from the University of International Business and Economics.