(Yicai Global) Aug. 31 -- The People's Bank of China strengthened the yuan by 286 basis points against the US dollar this morning, fixing the central parity rate at 6.8605, the highest level since July 2, 2019.

The onshore yuan market closed at 6.8651 during the previous trading day, appreciating 143 basis points over the day.

The redback is expected to get even stronger this year as China's economy recovers and the US Federal Reserve is predicted to retain its loose monetary policy, according to Liu Yiju, researcher at Bank of China.

The China Foreign Exchange Trade System, the interbank trading and foreign exchange division under the central bank, sets the benchmark on the morning of each business day. Spot rates may deviate 2 percent above or below the figure.

Editor: Emmi Laine