The Chinese currency, or the yuan, on Wednesday gained 74 basis points to 6.5855 per U.S. dollar, according to the China Foreign Exchange Trading System.

The central parity rate of the RMB, or the yuan, was 5 basis points stronger than the previous record of 6.586 set on Feb. 1, 2011.

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

The yuan has appreciated 3.6 percent since June last year.

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.