Expert: Yuan to remain stable

Currency controls to end if market can 'overcome some challenges'

Despite expectations of a weakening yuan this year, a former senior official believes the Chinese currency should not see major fluctuations, and could become free-floating relatively soon, probably in less than three years.

"The yuan is expected to remain fundamentally stable over a period of time, as the currency fluctuation is determined by economic fundamentals and the economy will likely remain healthy," said Guan Tao, a former director of the International Payments Department of the State Administration of Foreign Exchange.