Yuan's exchange rate will remain reasonable

The Chinese yuan went beyond 7 against the US dollar on Monday, causing quite a stir. But it is actually nothing more than a normal daily trading fluctuation and does not deserve over-interpretation.

The yuan is weak against the dollar in the short term mainly because of the pressure caused by the unilateral and protectionist moves of the US government, which has dampened Chinese exports and had a bearing on the expectations of the yuan's exchange rate against the greenback.

But if we look at the yuan-dollar exchange rate trajectory over a longer period of time, the Chinese currency has remained on an upward trend against the US dollar since the late 1990s, rising by about 20 percent, which is largely in line with the overall strengthening of the Chinese economy, which is now the world's second-largest and expected to become the largest in one or two decades.