The central parity rate of yuan, the Chinese currency, Monday gained 39 basis points to 6.5891 against the U.S. dollar, according to the China Foreign Exchange Trading System.

China's central bank announced in June 2010 it would further reform the exchange rate formation mechanism to improve its flexibility.

The rate appreciated to an all-time high of 6.5876 on Jan. 27, 2011.

On China's foreign exchange spot market, the yuan can rise or fall 0.5 percent from the central parity rate each trading day.

The central parity rate of the RMB against the U.S. dollar is based on a weighted average of prices before the opening of the market each business day.