CCTV.com - CNTV English - CCTV News

Yuan fluctuates in recent weeks

08-27-2010 08:58 BJT

The depreciation of the yuan has provoked concerns about the stability of the currency. But analysts say, it simple proves the yuan's value has become more flexible.

China's central bank announced on June 19th this year that it would further the reform of the formation mechanism of the yuan exchange rate to improve its flexibility.

Experts say there's no need to worry about the yuan's stability, and the recent depreciation is merely a temporary fluctuation.

Ding Zhijie, Dean of Finance of University of Int'l Business & Economics said "I believe the Renminbi will appreciate in the next two years. But the trend will be different to that of the 2005-2008 period, when the currency was appreciating in a single direction. I believe the currency is headed for a two-way fluctuation in the future."

Some experts also attribute the recent tumble to the worsening outlook on global economic recovery.

Liu Weiming, Senior Analyst of China CITIC Bank said "I think the stronger U.S. dollar against other currencies is also causing the yuan's depreciation. And the main reason for that is the slowdown in world economic growth. Developed countries are facing great risks of a double dip recession."

Experts are saying the yuan's temporary depreciation is by no means caused by the worsening domestic economic environment. So, they don't expect currency fluctuations will have any impact on China's capital market.

Editor:Xiong Qu |Source: CNTV.CN

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program