BEIJING: A sharp drop of the Chinese currency, the Renminbi or Yuan, is unlikely despite strong US dollar pressure, said CPPCC member Yi Gang, China’s central bank’s deputy governor.
Overall, China’s economic growth is still in the high speed growth. The competitiveness of China’s economy is relatively strong and China’s trade still has a big market. Yi said that the RMB will remain stable fundamentals from the expectations and market situation.
With the interest rate cut by the People’s Bank of China, the market is betting on the RMB to weaken further. Despite the RMB’s downward trend, analysts have dismissed the possibility of the RMB taking a dive, citing China’s huge currency reserves and the havoc a too-weak RMB will cause to the economy.
AS to the Renminbi’s internationalization, Yi noted that it will be steadily push forward this year, which is a process of marketing as well as a kind of market behavior. Some countries and regions will be willing to sign currency swap agreements with China this year. China will steadily promote them according to the realities of the situation.