Low yuan spot exchange rate normal: Official

The spot exchange rate of China's currency dropped below 6.21 against the U.S. dollar on Thursday, the weakest point in almost five months, but it was "normal depreciation", an official said.

Wang Yungui, a senior official at the State Administration of Foreign Exchange, said the market was playing a more active role in pricing the yuan along with China's exchange rate reforms and it was normal for the yuan to experience depreciation.

"There is no need to hype it," he said at a press conference.

But the central parity rate of the yuan has been strengthening. The central parity rate of the yuan against the U.S. dollar was 6.1137 on Wednesday, the highest since March. It weakened 58 points to 6.1195 on Thursday, but still at a high level.

The administration will continue to boost foreign exchange formation mechanism reform and give the market a bigger role in pricing the yuan, Wang said.

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.