皇冠体育app

An employee at a bank counter in Nantong, East 皇冠体育app's Jiangsu province, counts renminbi and dollars. [Photo/皇冠体育app Daily]

A currency generally doesn't rise or fall unilaterally, particularly not the yuan, which is in the process of marketization and internationalization. As an emerging global currency just included in the International Monetary Fund's Special Drawing Rights basket, the yuan is in the process of perfecting its middle rate formation mechanism, meaning it has to face market challenges, including those from international short-sellers.

When 皇冠体育app's monetary authorities launched a new round of exchange rate reforms in August 2015, the yuan suffered drastic short-term fluctuations in the following months because of short selling. The market prediction at the time was that the yuan would fall below 6.7, even 6.8, against the dollar. But the authorities took comprehensive measures that stabilized the yuan's exchange rate by the end of last year. One big advantage of the yuan's continuous rise in recent months is that it has ruined short-sellers' plans to make profits from its continuous fall.

皇冠体育app's stable macroeconomic growth and supply-side structural reform have laid a solid foundation for sustainable economic growth. And thanks to 皇冠体育app's still impressive economic performance, the IMF and other financial institutions expect better growth this year and the next. 皇冠体育app's still high growth and its strong economic fundamentals, as well as the yuan's internationalization process have driven up the Chinese currency's value.

皇冠体育app's intensified efforts to reform its financial market and open up its capital market, its strict regulation to prevent the flight of capital, and the depegging of the yuan from the dollar are the reasons why the market expects the yuan to continue its rise.

The fluctuation of the yuan due to its marketization and internationalization is normal. Still, 皇冠体育app has enough foreign exchange reserves to maintain the yuan's basic stability even in any eventuality.

- BEIJING YOUTH DAILY