1st LD-Writethru: Chinese yuan weakens to 6.8949 against USD Friday

The central parity rate of China's renminbi, or the yuan, weakened 19 basis points to 6.8949 against the U.S. dollar Friday, according to the China Foreign Exchange Trade System.

The country's forex regulator has stressed that China's foreign exchange market is now relatively stable, with cross-border capital movement gradually balancing out.

During a meeting with representatives of foreign investors, Pan Gongsheng, head of the State Administration of Foreign Exchange, said China's foreign exchange management will basically focus on reform and opening-up to facilitate cross-border trade and investment, and at the same time prevent risks from cross-border capital flows.

China had just over 3 trillion dollars in outstanding foreign exchange reserves by the end of February, still the largest foreign exchange reserve stockpile in the world.

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 U.S. dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day. Endite