Stability in renminbi expected

Large trade surplus and strong foreign direct investment are positive factors, official says

There is no reason to worry about a long-term depreciation of the renminbi, a senior official said on Thursday, after the central bank lowered the daily fixed exchange rate to a four-year low of 6.4236 yuan per US dollar.

Wang Yungui, head of the State Administration of Foreign Exchange's policy and regulation department, believes that the country's strong balance of payments position - reflected by a large trade surplus and stable foreign direct investment - will prevent a sharp fall in the currency.