Appreciate the yuan depreciation

Devaluation of Chinese currency is a short-term phenomenon and poses no long-term risks

Since the beginning of this year, the renminbi has been depreciating against the US dollar. That marked a departure from the earlier trend of the Chinese currency appreciating against the US greenback since the exchange rate reform in 2005.

On Jan 15, the People's Bank of China's midpoint rate was 6.04 yuan for one US dollar. But by March 14, the same had fallen to 6.14 yuan. The bank announced that, effective March 17, the exchange rate would be allowed to rise or fall 2 percent from a daily midpoint rate set each morning by the central bank.