BEIJING -- Some Chinese banks have phased out the use of the "counter-cyclical" factor in the pricing mechanism of the yuan's central parity rate against the greenback, according to an online statement of the country's forex regulator.

Market-making banks have made the move on their own initiative based on their judgment of economic fundamentals and market situations, according to the China Foreign Exchange Trade System (CFETS).

The adjustment could help improve the transparency and effectiveness of the yuan's existing pricing model, the CFETS said.

Since the start of the year, exchange rates of the Chinese renminbi have maintained two-way fluctuations based on market supply and demand and demonstrated greater flexibility, the regulator said, citing the stable foreign exchange market in the country and equilibrium in the international balance of payments.

To curb forex market fluctuations driven by irrational sentiment, China's forex regulator introduced the counter-cyclical adjustment factor to the existing pricing model of the yuan's central parity rate against the US dollar in May 2017.

Chinese yuan weakened 206 pips to 6.7195 against the US dollar Wednesday, according to the CFETS.