The central parity rate of the Chinese currency renminbi, or the yuan, strengthened 202 basis points to 6.4372 against the US dollar on Jan 16, hitting the highest record since Dec 11 of 2015, according to China Foreign Exchange Trade System.

China International Capital Corp Ltd (CICC) recently adjusted its forecast for the yuan against the US dollar from the previous 6.48 to 6.28 by the end of 2018, with a prediction of a weakening US dollar in 2018.

In China’s spot foreign exchange market, the yuan is allowed to rise or fall by 2 percent from the central parity rate each trading day.

The central parity rate of the yuan against the US dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day.