Yuan's depreciation pressure predicted to ease in 2017, report

Updated:2017-03-27 09:38:25

  The depreciation pressure on the Chinese yuan is expected to ease in 2017, thanks to several supporting elements, said a report released by a Beijing-based think tank on Saturday.

  The report by the Taihe Global Institute said the yuan exchange rate has gotten support from the positive results of government's improved management of foreign exchange, narrowed service trade deficit and the rising foreign exchange reserve.

  When predicting the year's trend of the yuan exchange rate, the report said the currency will face less depreciation pressure against the US dollar in 2017 than last year.

  The report attributes this prediction to four elements: China's central bank is increasing efforts to improve the management of yuan exchange rate expectations; the advancing supply-side structural reform is helping to restore the economy's interior momentum; the stabilized interest rate gap between China and US is restricting the RMB's depreciation and further depreciation of the yuan is expected to aggravate Sino-US trade friction, which both sides want to avoid.