AUGUSTA, Maine (AP) China has hit a new high of 7.25% of the global dollar value for April, the lowest in more than a year and the biggest monthly decline in the currency in nearly a decade.
The country’s central bank said Friday that the move was driven by an economic boom in the country’s southern regions, which are seeing their output expand rapidly in response to the global economic slowdown.
The yuan has risen more than 1.3% against the dollar in the past week.
China’s central government has not officially published its economic data.
The central bank also said Friday the country had recorded its fastest quarterly GDP growth of 7%, the biggest annualized increase since April 2009.
China has long been the world’s second-largest economy and its stock market has gained more than 30% since 2009.
China has also had a solid financial sector.
The government said Friday it would increase capital controls to stem a surge in illegal money flows and to boost enforcement of currency controls, but it did not specify the extent to which the measure would apply to cash withdrawals.
The U.S. dollar has strengthened against other major currencies, but has lagged behind against the yuan in recent months.
The yuan is currently trading at about 8.50%, up from around 7.5% a week ago.
China’s central Bank is trying to ease restrictions and prevent money laundering in the economy, but the economy has been sluggish for years, and the government has struggled to rein in speculation.