Business / Markets

Yuan exchange rate flux seen as 'normal'

By Li Jiabao ( Updated: 2014-03-18 21:37
China's Commerce Ministry spokesman Shen Danyang told reporters on Tuesday that recent fluctuations in the yuan's exchange rate "was more determined by the market and is in normal scope" compared with neighboring countries.

He added that the two-way fluctuations will be normal as exchange rate reforms move forward.

The People's Bank of China, China's central bank decided on Saturday to widen the yuan's trading band, allowing the currency to move up or down by 2 percent daily, compared with 1 percent previously.

By the end of 2013, the yuan appreciated 35.75 percent against the dollar since the revaluation in 2005 when China dropped the yuan's decade-long peg to the greenback. The yuan's real effective exchange rate has increased 42.21 percent, according to Shen.

In the January-February period, the yuan depreciated 0.4 percent against dollar, Shen said.

He added that the fluctuation should be understood more rationally against the background of exchange rate reforms rather than being overinterpreted.

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