Chinese yuan to remain stable

18 June, 2019 12:00 AM printer

BEIJING: The Chinese currency renminbi (RMB) has experienced sharp fluctuations in both onshore and offshore markets recently. However, economists believe that the Chinese yuan will remain stable in the long run supported by its sound economic fundamentals.

On June 7, the offshore RMB weakened to 6.96 yuan against the U.S. dollar, and on June 10, the exchange rate of onshore Chinese yuan fell to 6.93 yuan against the U.S. dollar, reports Xinhua.

The U.S.-China trade frictions have brought concerns of great uncertainties to the market, which has led to recent yuan fluctuations, according to E Zhihuan, chief economist at the Bank of China (Hong Kong).

Liu Guoqiang, vice governor of the People’s Bank of China, said that the country is “capable and confident” of keeping the exchange rate generally stable on a reasonable and balanced level considering its sound economic fundamentals, great resilience and huge potential.